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
Develop the standard cost for each good cutting board and prepare a standard cost card. The standard cost should identify the standard quantity, standard rate, and standard co
What is your overall appraisal of the company's cost system and its use in reports to management List the strengths and weaknesses of this system and its related reports for
For each of the following three separate cases, use the information provided about the calendar year 2014 operations of Sahim Company to compute the required cash flow informa
Funding budget shortfalls As part of your personal budgeting process, you have determined that in each of the next 5 years you will have budget shortfalls.
At the end of Year 11, JJW Ltd. owns a patent with a remaining useful life of 10 years and a carrying amount of $400,000. What impairment loss would JJW Corporation record on
Calculate a) net book value of the equipment at the end of the third year using the straight-line method of depreciation; and b) depreciation expense for the second year u
Prepare journal entries to record the admission of Carmen for a 40 percent interest in the capital and rights to future profits under the following independent assumptions.
Compute the balances of the inventory accounts and show how they are disclosed in the financial statements and prepare an income statement for the month ending March 31, 2013.