Question: 1. a) Compute a, b, of Y=a + bx
b) Compute projected spending @ 5750 units
c) prepare chart showing difference from formula determine & each actual value
d) With regression what would be the slope and intercept for Y = a + bx
Hi-Lo Method
| A |
B |
C |
| |
Actual = X |
Actual = Y |
| |
Units |
$ |
| B8 |
5500 |
$21,000 |
| B9 |
5600 |
$21,200 |
| B10 |
5800 |
$21,600 |
| B11 |
6400 |
$22,700 |
| B12 |
5400 |
$19,900 |
| B13 |
5900 |
$22,000 |
2. a) Complete chart above
b) Create Variable Format AND GAAP format income statements
Fixed/Variable Income Statement
|
|
Product |
Period |
Amount |
|
|
Product Materials |
|
|
$950,000 |
|
|
Direct Labor spending per unit |
|
|
$0.70 |
|
|
Variable MOH per product unit |
|
|
$2.25 |
|
|
Fixed Sellng |
|
|
$165,500 |
|
|
Variable Selling per unit |
|
|
4.50% |
of Sales $s |
|
Adminstrative |
|
|
$149,000 |
|
|
Fixed Manufacturing OH |
|
|
$218,000 |
|
|
|
|
|
|
|
| Sales Quantity |
|
105,000 |
|
|
|
| Sales price per unit |
|
$20.00 |
|
|
|