Thane Company is interested in establishing the relationship…

Thane Company is interested in establishing the relationship between electricity costs and machine-hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month Machine-Hours Electricity Costs January 2,900 $ 18,600 February 3,300 21,400 March 2,300 13,700 April 3,500 23,400 May 4,200 28,450 June 3,700 22,400 July 4,500 24,950 August 3,900 22,950 September 2,400 15,900 October 4,100 26,400 November 5,300 31,400 December 4,900 27,950 Summary Output Regression Statistics Multiple R 0.959 R Square 0.920 Adjusted R2 0.912 Standard Error 1,550.32 Observations 12.00 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 2,992.80 1,933.78 1.55 0.15 (1,315.92) 7,301.52 Machine-Hours 5.37 0.50 10.70 0.00 4.25 6.49 What is the percent of the total variance that can be explained by the regression?

Parton Company, a manufacturer of snowmobiles, is operating…

Parton Company, a manufacturer of snowmobiles, is operating at 70% of plant capacity. Parton’s plant manager is considering making the headlights now being purchased from an outside supplier for $11.00 each. The Parton plant has idle equipment that could be used to manufacture the headlights. The design engineer estimates that each headlight requires $4.00 of direct materials, $3.00 of direct labor, and $6.00 of manufacturing overhead. Forty percent of the manufacturing overhead is a fixed cost that would be unaffected by this decision. A decision by Parton Company to manufacture the headlights should result in a net gain (loss) for each headlight of: (CMA adapted)

The following information has been gathered for Catalyst Leg…

The following information has been gathered for Catalyst Legal Services for its fiscal year ending December 31: Actual office overhead costs $ 1,295,500 Actual billable labor-hours 44,800 Actual billable labor costs $ 3,980,000 Estimated office overhead costs $ 1,041,600 Estimated billable labor-hours 48,200 Estimated billable labor costs $ 4,340,000 What is the predetermined office overhead rate per billable labor dollar?

The Hammer Division of Excel Company produces hardened sledg…

The Hammer Division of Excel Company produces hardened sledge hammers. One-third of Hammer’s output is sold to the Government Products Division of Excel; the remainder is sold to outside customers. Hammer’s estimated operating profit for the year is: Government Products Division Outside Customers Sales $ 15,000 $ 40,000 Variable costs (10,000) (20,000) Fixed costs (3,000) (6,000) Operating profits $ 2,000 $ 14,000 Unit sales 10,000 20,000 The Government Products Division has an opportunity to purchase 10,000 hammers of the same quality from an outside supplier on a continuing basis. The Hammer Division cannot sell any additional products to outside customers. Should the Excel Company allow its Government Products Division to purchase the hammers from the outside supplier at $1.25 per unit?