(Appendix 3A)Jenson Manufacturing Is Developing Cost Formula for Future Planning

question 36

Essay

(Appendix 3A)Jenson Manufacturing is developing cost formula for future planning and cost control.Utilities is one of the mixed costs associated with production.The cost analyst has suggested that units produced be used as the activity base to determine the fixed and variable costs and the cost formula for utility costs.The controller feels the most appropriate cost base is direct labour hours.Below is information collected over the past 8 months:
Required:
Use the least squares regression method to determine the cost formula for utilites cost assuming units produced is the independent variable.Calculate the R-squared.Use the same method to determine the cost formula and R-squared assuming direct labour hours is the independent variable.Use a spreadsheet or calculator to determine the slope and intercept.Do you recommend the company use units produced or direct labour hours as a cost base? Explain.

Understand the concept of behavioral levels and set points in animal behavior.

Recognize the role of reinforcement in behavior frequency, according to Skinner's theory.

Comprehend the fundamentals of response deprivation theory and its developers.

Apply Premack’s principle in modifying behaviors by understanding the relationship between preferred and less preferred activities.

---

Definitions:

Triglyceride Levels

The amount of triglycerides, a type of fat found in the bloodstream, indicative of heart health and metabolic status.

Stroke

A medical condition that occurs when the blood supply to part of the brain is interrupted or reduced, preventing brain tissue from receiving oxygen and nutrients.

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, heart rhythm problems (arrhythmias), and heart defects among others.

Obesity

A medical condition characterized by excessive body fat that presents a risk to health, often defined by a body mass index (BMI) of 30 or above.