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Author Question: Maxwell Corporation is trying to predict its manufacturing overhead costs for the upcoming year; ... (Read 66 times)

Awilson837

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on: Jan 5, 2020
Maxwell Corporation is trying to predict its manufacturing overhead costs for the upcoming year; they are debating the use of the high-low method versus the use of regression analysis.  They have gathered information about their manufacturing overhead costs in each of the past six months. A table containing their cost data and the associated machine hours in each month (the cost driver) follows.

MonthManufacturing overhead costsNumber of machine hours
April$22,00012,250
May$22,86012,510
June$21,60011,280
July$21,80011,410
August$21,25010,980
September$21,93011,670

The company performed a regression analysis using the above data and had the following results. (Note: the results are excerpts so not all of the regression analysis results are presented.)


Required:
1.  What is the cost equation if the high-low method is used to estimate costs?
2.  Using the high-low method, predict total manufacturing overhead costs if Maxwell
Corporation uses 12,000 hours.
3  What is the cost equation if regression analysis is used to estimate costs (use the results from
the regression analysis provided)?
4.Using regression analysis, predict total manufacturing overhead costs if Maxwell Corporation
uses 12,000 hours.
5.Which method is generally the best predictor of costs? Justify your answer.
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Marked as best answer by Awilson837 on Jan 5, 2020

lucas dlamini

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Reply #1 on: Jan 5, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Awilson837

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Reply 2 on: Jan 5, 2020
Gracias!

patma1981

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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