Machine Overhead
Hours Costs
8,020 564,210$
6,490 503,775
1,530 60,435$
Correct! Correct!
60,435$
1,530
39.50$
Enter the overhead cost from either the month with the
highest activity or the month with the lowest activity
Enter the estimate of total variable costs for the same month
Total estimated overhead costs
Estimate of total fixed cost per month
Enter the estimate of variable costs for the month based on
the monthly average of 7,500 machine hours
Requirement b.
ADRIANA CORPORATION
Exercise 05-36
Requirement a.
Enter data from the month with the
highest activity
Enter data from the month with the
Estimate of variable cost per machine hour
Differences
Enter the difference in overhead costs
Enter the difference in machine hours
lowest activity
Labor Machine Overhead
Month Hours Hours Costs
13,625 6,775 513,435$
23,575 7,035 518,960
33,400 7,600 549,575
43,700 7,265 541,400
53,900 7,955 581,145
63,775 7,895 572,320
ADRIANA CORPORATION
Given Data E05-36:
Employees Costs
54 5,029$
26 2,374
28 2,655$
Correct! Correct!
94.82$
Estimate of total fixed cost per month
highest activity or the month with the lowest activity
Enter the difference in overhead costs
Enter the difference in employees
Estimate of variable cost per employee
Enter the overhead cost from either the month with the
(91.3)$
2,845
2,753$
Correct!
Store Costs Employees Revenues
101 4,214$ 39 4,100$
102 2,894 29 2,227
103 5,181 47 5,738
104 3,998 38 3,982
105 3,676 33 2,914
0.83861204
0.70327015
0.68044478
514.348777
15
ANOVA
Standard
Coefficients Error tStat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -162.85935 713.288299 -0.2283200 0.8229480 -1,703.8250 1,378.106 -1,703.825 1,378.106311
Problem 05-68
DAVIS STORES
Requirement a.
Enter data from the month with the
highest activity
Enter data from the month with the
lowest activity
Differences
Requirement b.
Observations
Enter the estimate of variable costs for the month based on
a store with 30 employees
Total estimated store costs
SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Standard Error
The data below is reproduced for use in Requirements d and e:
Enter the estimate of fixed costs per month
Requirement d.
Adjusted R Square
Employees 103.0934460 18.5728651 5.55075600 9.37E-05 62.96921012 143.2177 62.9692101 143.2176814
Estimate of operating costs:
Total fixed operating costs
Total variable operating costs at 30 employees
Total estimated operating costs
Correct!
0.838613811
0.703273125
0.653818646
535.348498
15
ANOVA
df SS MS F
Significance F
Regression 2 8151200.229 4075600.11 14.220615 .00068256
Residual 12 3439176.171 286598.014
Total 14 11590376.4
Standard
Employees 105.5293717 222.9716987 0.47328595 0.6445025 -380.28423 591.342969 -380.284226 591.3429694
Total revenues
Total variable operating costs at 30 employees
Total estimated operating costs
Estimate of operating costs:
Total fixed operating costs
Correct!
Follow the directions in appendix A of the textbook.
SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations
Requirement e.
Store Costs Employees Revenues
101 4,214$ 39 4,100$
102 2,894 29 2,227
103 5,181 47 5,738
104 3,998 38 3,982
105 3,676 33 2,914
106 3,319 38 4,023
Requirement a. If an amount for either fixed or variable costs equals 0, enter 0
Operating Fixed Variable
Cost Cost Cost
350,000$ –$ 350,000$
215,000 150,000 65,000
1,200,000 190,000 1,010,000
Utilities
Warehouse labor
Equipment leases
Data processing equipment
Building leases
Other
Total
Correct! Correct! Correct!
450,000
7.00$
Correct!
3,100,000
3,150,000
6,250,000
Correct!
Operating
Cases Costs
432,000 6,362,255$
345,000 5,699,139
87,000 663,116$
Correct! Correct!
663,116$
87,000
7.62202$
Enter the operating cost from either the month with the
highest activity or the lowest activity
Enter the estimate of total variable costs for that month
using the computed variable cost per case
Estimate of total fixed cost per month
Estimate of operating costs:
Total fixed operating costs
Total variable operating costs at planned production
Total estimated operating costs
Correct!
CAIMAN DISTRIBUTION PARTNERS
Planned production (in cases)
Total variable operating costs
Estimate of total operating costs
Requirement b.
Enter data from the month with the highest activity level
Problem 05–69
Cost Item
Supplies
Supervision
Truck expense
Variable cost per case
Total fixed operating costs
Enter data from the month with the lowest activity level
Differences
Enter the difference in operating costs
Enter the difference in the number of cases
Estimate of variable cost per case
The data below is reproduced for use in Requirements c and d:
Price Operating
Month Cases Index Costs
1 345,000 115 5,699,139$
2 362,000 117 5,806,638
3 358,000 118 5,849,905
4 380,000 122 5,927,617
5 374,000 124 5,939,135
0.98034501
0.96107634
39,850.1391
12
3,411,468$
6.70765$
Estimate of operating costs:
Total fixed operating costs
Total variable operating costs at planned production
Total estimated operating costs
Correct!
0.9905
0.9810
0.9768
29,315.827
12
Intercept
Price Index
Cases
3,176,995$
Regression Statistics
SUMMARY OUTPUT
Regression Statistics
SUMMARY OUTPUT
Standard Error
Multiple R
Follow the directions in appendix A of the textbook.
Requirement c. Simple regression based on cases:
R Square
Coefficients
Observations
Standard Error
Adjusted R Square
Follow the directions in appendix A of the textbook.
Requirement d.
Cases
Intercept
Observations
R Square
Multiple R
Estimate of operating costs:
Total fixed operating costs
Coefficients
Correct!
Operating
Cost Behavior
350,000$ All variable
215,000 150,000$ fixed
1,200,000 190,000$ fixed
855,000 550,000$ fixed
215,000 125,000$ fixed
Equipment leases
Warehouse labor
Data processing equipment
Other
Price Operating
Month Cases Index Costs
1345,000 115 5,699,139$
2362,000 117 5,806,638
3358,000 118 5,849,905
4380,000 122 5,927,617
5374,000 124 5,939,135
6395,000 125 6,043,364
Next month’s price level for Requirement d.
Number of cases to be shipped next month
CAIMAN DISTRIBUTION PARTNERS
(exclusive of product costs)
Classified Operating Costs
Account
Supplies
Given Data P05-69:
Supervision
Truck expense
Building leases
Utilities