EXERCISE 5-12 (30 MINUTES)

2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE 2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
2. Using statistical software, the least-squares regression method yields es-timates of $39,859 per month for the fixed cost and $2.15 per direct la-bor-hour for the variable cost. The R

2

is 0.91. Therefore, the cost formula is Y = $39,859 + $2.15X.

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Solutions Manual, Chapter 5

261

Case 5-28 (continued)