Business, 19.06.2020 02:57 northpolea

Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: MonthMaintenance Costs Machine Hours 1$2,750 1,840 2 2,910 1,920 3 3,060 2,000 4 3,170 2,020 5 3,250 2,050 6 3,220 2,030 7 3,160 2,010 8 3,000 1,990 9 2,770 1,850 10 2,370 1,250 11 2,380 1,450 12 2,600 1,740 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.

Answers: 3

Show answers

Answers

Answer from: autumnguidry7628

Month Maintenance Machine Equation MAPE

costs hours error (Abs.)

1 $2,750 1,840 $269 9.78%

2 $2,910 1,920 $197 6.77%

3 $3,060 2,000 $135 4.41%

4 $3,170 2,020 $47 1.48%

5 $3,250 2,050 0 0%

6 $3,220 2,030 $8 0.25%

7 $3,160 2,010 $46 1.46%

8 $3,000 1,990 $184 6.13%

9 $2,770 1,850 $260 9.39%

10 $2,370 1,250 0 0%

11 $2,380 1,450 $210 8.82%

12 $2,600 1,740 $309 11.88%

60.37%

variable cost per unit = (highest activity cost - lowest activity cost) / (highest activity units - lowest activity units) = ($3,250 - $2,370) / (2,050 - 1,250) = $880 / 800 units = $1.10 per unit

fixed cost = $3,250 – ($1.10 x 2,050) = $995

Cost model = $995 + $1.10X

2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.

MAPE = 60.37% / 12 = 5.03%

Answer from: Quest

it was decent, could have been a little better.. how bout you lol.

Answer from: Quest

Iguess you must be confident and have the qualifications do this job you go

Another question on Business

Business, 21.06.2019 22:10

Fess receives wages totaling $74,500 and has net earnings from self-employment amounting to $71,300. in determining her taxable self-employment income for the oasdi tax, how much of her net self-employment earnings must fess count? a. $74,500 b. $71,300 c. $53,900 d. $127,200 e. none of the above.

Answers: 3

Answer

Business, 22.06.2019 05:10

The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?

Answers: 1

Answer

Business, 22.06.2019 11:00

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations

Answers: 1

Answer

Business, 22.06.2019 11:00

On analyzing her company’s goods transport route, simone found that they could reduce transport costs by a quarter if they merged different transport routes. what role (job) does simone play at her company? simone is at her company.

Answers: 1

Answer

You know the right answer?

Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you...

Questions