Complete a three-part assessment in a supplied Excel template, applying regression analysis to decision making, determining unit costs, and analyzing overhead using a predetermined overhead rate.

Complete a three-part assessment in a supplied Excel template, applying regression analysis to decision making, determining unit costs, and analyzing overhead using a predetermined overhead rate.

Complete a three-part assessment in a supplied Excel template, applying regression analysis to decision making, determining unit costs, and analyzing overhead using a predetermined overhead rate.
Complete a three-part assessment in a supplied Excel template, applying regression analysis to decision making, determining unit costs, and analyzing overhead using a predetermined overhead rate.

Preparation

Use the Assessment 2 Template [XLSX] to complete the following. Each part is a different tab in the template.

Part 1: In the template, interpret regression results from the delivery company.

Compare your estimates to the controller’s estimates and state your reasons for supporting or rejecting your cost equation.

Write a one-page report informing management of the correct volume that will generate $11,000 per month in operating profits before taxes.

Show all calculations.

Part 2: Compute the cost per unit of the two different models of calculators produced by Nevada Instruments based on the operations costing. Show all calculations.

Part 3: Complete calculations and analysis of overhead using a predetermined rate for Atchison Company. Show all calculations.

Submit the completed template for Assessment 2.

Instructions

Assessment 2 Part 1: Interpretation of Regression Results

Part 1 Scenario

Your company provides various delivery services. Management wants to know the volume of a particular delivery that would generate $11,000 per month in operating profits before taxes. The company charges $22 per delivery.

The controller’s office has estimated overhead costs at $9,900 per month for fixed costs and $12 per delivery for variable costs. You believe that the company should use regression analysis. Your analysis shows the results to be:

Monthly overhead=$26,501+$10.70 per delivery.

Your estimate was based on the following data:

Data Used for Estimate

Month

Overhead Costs

Number of Deliveries

1

$159,630

$12,510

2

$183,990

$15,060

3

$142,860

$11,430

4

$194,430

$15,450

5

$151,890

$12,180

6

$150,120

$11,970

7

$192,600

$15,660

8

$154,080

$12,630

9

$141,030

$11,250

10

$184,800

$15,300

11

$203,490

$12,780

12

$183,120

$14,580

13

$180,630

$14,730

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