TABLE 13-2A candy bar manufacturer is interested in trying t…
TABLE 13-2A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below: Referring to Table 13-2, what percentage of the total variation in candy bar sales is explained by prices? (Hint: put the data in excel and use R to conduct the simple linear regression analysis)
Read DetailsThe annual budget forecasts $10,000 in overhead costs and 4,…
The annual budget forecasts $10,000 in overhead costs and 4,000 direct labor hours. The actual hours worked were 5,000. What is the effect on the predetermined overhead rate if instead the estimated direct labor hours were 2,000 instead of 4,000?
Read DetailsManagement may find that customers considered to be “low cos…
Management may find that customers considered to be “low cost and profitable” are actually “high cost and unprofitable” after analyzing costs with an ABC approach. Identify the scenario where this is likely NOT to be the case.
Read DetailsAudit results indicate that management intentionally estimat…
Audit results indicate that management intentionally estimated too much spoilage when calculating the predetermined overhead rate. As a result, actual overhead costs are much less than estimated leading to bonuses.Which of the following statements regarding the IMA’s Standards of Ethical Professional Practice is true?
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