Determining cost functions for manchester foundry
Course:- Managerial Accounting
Reference No.:- EM1349742

Assignment Help
Assignment Help >> Managerial Accounting

a. Manchester Foundry produced 45,000 tons of steel in March at a cost of £1,150,000. In April, the foundry produced 35,000 tons at a cost of £950,000. Using only these two data points, determine the cost function for Manchester following the instruction in my post in Materials.

b. Use Excel's "scatter plot" graphing function to plot the two points and the "trendline" option to determine the equation of interest. Does it match what you did manually? What is the interpretation of the equation and graph?

c. You obtain new data, 30,000 tons and a cost of 600,000. How do those values match the equation you came up with by hand? Put the point into your Excel spreadsheet and create the scatter plot and trendline. Describe the output.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
Supposing you would like to purchase the new car next year, develop the personal budget for yourself or a friend for this year. Make sure to comp,rise a savings plan to save
Which of the two systems will be more profitable for the firm if sales for either system are expected to average 150,000 units per year? How many units must the compan
Make a cash budget for Sharpe covering the first seven months of 2004. Sharpe has $200,000 in notes payable due in July that must be repaid or renegotiated for an extension.
A quasi-reorganization was approved that reduced the par to $25, wrote down plant assets by $65,000, and eliminated the deficit. Prepare the appropriate journal entries.
Columbia's management feels that the time value of money should be considered in all long-term decisions. Briefly discuss the rationale that underlies management's belief.
Now combine the setup and packing activities into one cost pool and repeat the assignment using the number of setups as the driver. Explain why the cost assigned to each pro
BAO2203- Corporate Accounting Assignment. What is environmental reporting? Explain how reporting on environmental issues could be related to the objectives of general purpose
A global marketing strategy refers to: the strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countr