The Cost Accountant for Vancouver Company Used an Excel Spreadsheet

question 158

Essay

The cost accountant for Vancouver Company used an Excel spreadsheet program to run ordinary least squares (regression) method on a set of monthly cost data for its utility cost. Vancouver's cost driver for utility cost is machine hours. The following results were produced.
Intercept 3,500
X Variable 3.75
Required:
A. Construct the cost formula for Vancouver's utility cost using the results from the least squares (regression) method.
B. Using the formula calculated in (A), calculate the estimated cost of utilities for May assuming that Vancouver will incur 150,000 machine hours?

---

Definitions:

Eardrum Vibration

The movement of the eardrum in response to sound waves, crucial for the hearing process.

Sound Wave

A type of wave that is an oscillation of pressure transmitted through a solid, liquid, or gas, composed of frequencies within the range of hearing and capable of producing a sound sensation.

Pressure Wave

A type of wave in which the oscillations occur in the direction of propagation, often found in sound waves.

Cochlea

A spiral-shaped, fluid-filled inner ear structure; it is essential for hearing as it transforms sound into nerve impulses.