The writer is very fast, professional and responded to the review request fast also. Thank you.
Presentation/PPT
27/08/2022
Regression Analysis
You have recently been hired as a cost accountant at Travenol Laboratories. The controller is an “old
school” accountant and has heard that you recently graduated with a degree in accounting. One day he
summons you to his office to assign you a task. He says, “I understand that recently educated
accountants are using a variety of statistical tools to determine causality between costs and their
respective drivers. We have been using direct labor hours as our cost driver for our manufacturing
overhead costs for as long as I have been here. In the last few years our production processes have
become more automated and I am not sure whether direct labor hours is the appropriate allocation
basis for our manufacturing overhead costs. I would like you to use some of those statistical tools to
determine whether there is a more appropriate cost driver.”
You leave his office recognizing that this is a tremendous career opportunity. If you can convince your
boss that you can use statistical analysis to determine the best cost driver, you will have established
yourself in the department as a knowledgeable professional. It is good fortune that one of your projects
in your cost class dealt specifically with this type of analysis.
Year MOH DLH DL$ MH DM$
2000 959,770 9,395 100,926 11,487 144,851
2001 862,178 6,219 133,284 19,067 115,829
2002 895,696 6,848 142,719 11,061 131,297
2003 848,527 10,932 203,982 15,444 146,817
2004 845,614 5,440 41,604 18,623 147,208
2005 790,814 14,859 222,892 17,390 108,088
2006 903,961 5,512 42,686 11,609 139,831
2007 904,067 10,284 114,264 14,204 144,130
2008 899,261 6,022 90,330 12,788 142,403
2009 964,293 8,701 90,517 15,867 163,767
2010 925,619 13,483 162,242 19,156 146,685
2011 769,965 12,348 145,227 10,964 114,007
2012 971,360 14,985 264,771 15,938 133,955
2013 774,788 6,688 60,325 11,578 140,928
2014 880,557 13,294 239,414 19,108 142,746
2015 983,464 14,067 211,011 13,839 102,336
MOH=Manufacturing Overhead MH=Machine Hours
DLH=Direct Labor Hours DM$=Direct Material Dollars
DL$=Direct Labor Dollars
Required:
1. Perform a regression on DLH, DL$, MH and DM$ and comment on the following for each;
a. The equation
b. Goodness of fit
c. Significance of independent variables
d. Any autocorrelation
2. What would you recommend and why?
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more