Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Garfield's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear cost equation (y= a + bx) for estimating Garfield's operating costs.
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- Odle Company manufactures a popular brand of cat repellant known as Cat-B-Gone, which it sells in gallon-size bottles with a spray attachment. The majority of Odie's business comes from orders placed by homeowners who are trying to keep neighborhood cats out of their yards. Odie's operating information for the first six months of the year follows: Month January February March April May June Number of Bottles Sold 1,000 1,100 1,300 2,000 2,400 3,000 Operating Cost $ 8,000 7,700 9,900 14,000 17,250 20,000 Required: 3. Using the high-low method, calculate Odie's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Odie's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear equation (y a+ bx) for estimating Odie's operating costs.Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield's operating information for the first six months of the year follows: Operating Cost Month January February March April Number of Bottles Sold 1,080 $ 10,570 1,330 15,670 1,850 16,050 2,480 19,680 3,490 27,350 3,610 34,750 May June Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Garfield's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear cost equation (ya+ bx) for estimating Garfield's operating costs. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5…Al-Noor Corporation assembles bicycles by purchasing frames, wheels, and other parts fromvarious suppliers. Consider the following data:• The company plans to sell 25,000 bicycles during each month of the year's first quarter.• A review of the accounting records disclosed a finished-goods inventory of 1,400 bicycles onJanuary 1 and an expected finished-goods inventory of 1,850 bicycles on January 31.• Al-Noor has 4,300 wheels in inventory on January 1, a level that is expected to drop by 5% atmonth-end.• Assembly time totals 30 minutes per bicycle, and workers are paid $14 per hour.• Al-Noor accounts for employee benefits as a component of direct labor cost. Pension andinsurance costs average $2 per hour (total); additionally, the company pays Social Security taxesthat amount to 8% of gross wages earned.Required:A. How many bicycles does Al-Noor expect to produce (i.e., assemble) in January?B. How many wheels are budgeted to be purchased in January?C. Compute Al-Noor's total direct…
- Living Corner sells home wares and various otherreading-related products. One of the store's most popular products is the fluffy pillow. The pillow each sell for $26.00. Originally the pillows were handmade by a local artisan. The store's owner has been impressed with the demand for the pillow and has recently begun a small manufacturing company to produce and distribute the pillow to other stores. Estimated sales for the fourth quarter (in units) are as follows: October 9 500 November 10 200 December 12 600 Total 32 300 Required: a) Prepare a sales budget for the fourth quarter based on the above information. b) Prepare a production budget for the pillow manufacturing company. The company did not have any inventory at the end of September, but they want to maintain a 20 percent inventory at the end of each month based on the next month's sales. January's sales are expected to be low, given the post-holiday trends and are estimated to be 6800 units. c) Explain the benefits of budgeting…JW Office Supplies, Inc., is a wholesale distributor of office supplies. It sells pencils and pens, paper goods (including computer paper and forms), staplers, calendars, and other items, excluding furniture and other major items such as copy machines that you would expect to find in an office. Sales have been growing at 5 percent per year during the past several years. Mr. Kay, the president of JW Office Supplies, recently attended a national office supplies convention. In conversations during that convention, he discovered that sales for ABC Office Supplies competitors have been growing at 15 percent per year. Arriving back home, he did a quick investigation and discovered the following: JW Office Supplies customer turnover is significantly higher than the industry average. JW Office Supplies vendor turnover is significantly lower than the industry average. The new market analysis system was supposed to be ready two years ago but has been delayed for more than one year in systems development. A staff position, reporting to the president, for a person to prepare and analyze cash budgets was created two years ago but has never been filled. Mr. Kay has called on you to conduct a systems survey of this situation. You are to assume that a request for systems development has been prepared and approved. The information system at JW Office Supplies is much like that depicted in Chapters 10 through 16. Make and describe all assumptions that you believe are necessary to solve any of the following: a. What are the specific tasks of this systems survey? b. Indicate specific quantifiable benefits and costs that should be examined in assessing the economic feasibility of any solutions that might be proposed. Explain how you would go about quantifying each benefit or cost. c. Propose and explain three different scopes for the systems analysis. Use a context diagram to describe each scope alternative. Hint: What subsystems might be involved in an analysis?The Candy Factory Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet peak demand during the "candy season" from Halloween through Valentine's Day. During the other six months of the year, the manufacturing facility operates at 75% of capacity. The Candy Factory Company provides the following data for the year: (Click the icon to view the data.) The Candy Factory Company receives an offer to produce 12000 cases of candy for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum selling price The Candy Factory Company should accept for the order? Explain why. The minimum selling price that Candy Factory Company should accept for the special order is the C In this situation, the are not relevant because they will be incurred whether the order is accepted or not. is appropriate in this situation. Data table Cases of candy produced and sold…
- Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at least once a month to all homes that subscribe to its service. It makes more frequent calls during the summer. The number of subscribers also varies with the season. The number of subscribers and the average number of calls to each subscriber for the months of interest follow: Subscribers Service calls (per subscriber) March 650 0.6 April 750 0.9 May 1,450 1.5 June 1,650 2.5 July 1,650 3.0 August 1,500 2.4 The average price charged for a service call is $80. Of the service calls, 30 percent are paid in the month the service is rendered, 60 percent in the month after the service is rendered, and 8 percent in the second month after. The remaining 2 percent is uncollectible. Varmit-B-Gone estimates that the number of subscribers in September should fall 10 percent below August levels, and…Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at least once a month to all homes that subscribe to its service. It makes more frequent calls during the summer. The number of subscribers also varies with the season. The number of subscribers and the average number of calls to each subscriber for the months of interest follow: Subscribers Service calls (per subscriber) March 600 0.6 April 700 0.9 May 1,400 1.5 June 1,600 2.5 July 1,600 3.0 August 1,500 2.4 The average price charged for a service call is $80. Of the service calls, 30 percent are paid in the month the service is rendered, 60 percent in the month after the service is rendered, and 8 percent in the second month after. The remaining 2 percent is uncollectible. Varmit-B-Gone estimates that the number of subscribers in September should fall 10 percent below August levels, and…Rosas Company started a promotional program in which for every 15 box tops returned, customers received a special mug. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information for the current year:
- Al-Noor Corporation assembles bicycles by purchasing frames, wheels, and other parts from various suppliers. Consider the following data: • The company plans to sell 25,000 bicycles during each month of the year's first quarter.• A review of the accounting records disclosed a finished-goods inventory of 1,400 bicycles on January 1 and an expected finished-goods inventory of 1,850 bicycles on January 31.• Al-Noor has 4,300 wheels in inventory on January 1, a level that is expected to drop by 5% at month-end.• Assembly time totals 30 minutes per bicycle, and workers are paid $14 per hour.• Al-Noor accounts for employee benefits as a component of direct labor cost. Pension and insurance costs average $2 per hour (total); additionally, the company pays Social Security taxes that amount to 8% of gross wages earned. Required: C. Compute Al-Noor's total direct labor cost for January. D. Briefly explain how the company's purchasing activity would affect the end-of-period balance sheet.Al-Noor Corporation assembles bicycles by purchasing frames, wheels, and other parts from various suppliers. Consider the following data: • The company plans to sell 25,000 bicycles during each month of the year's first quarter.• A review of the accounting records disclosed a finished-goods inventory of 1,400 bicycles on January 1 and an expected finished-goods inventory of 1,850 bicycles on January 31.• Al-Noor has 4,300 wheels in inventory on January 1, a level that is expected to drop by 5% at month-end.• Assembly time totals 30 minutes per bicycle, and workers are paid $14 per hour.• Al-Noor accounts for employee benefits as a component of direct labor cost. Pension and insurance costs average $2 per hour (total); additionally, the company pays Social Security taxes that amount to 8% of gross wages earned. Required: A. How many bicycles does Al-Noor expect to produce (i.e., assemble) in January? B. How many wheels are budgeted to be purchased in January?Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie's prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company's biggest source of revenue. A portion of Leslie's operating information for the company's last year follows: Number of Operating Month Jerseys Printed Cost $5,735 January February 200 205 5,830 8,690 9,800 March 575 April Мay 680 625 9,275 6,230 June 410 July August September October 390 6,140 5,940 4,810 230 180 305 6,005 5,960 4,955 November 235 December 190 Required: 3. Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey. 4. Using the high-low method results, calculate the store's expected operating cost if it printed 455 jerseys. 5. Perform a least-squares…