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Yates Corp Required:
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question 99

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Yates Corp.wants to develop a cost equation for its administrative costs.The controller believes the appropriate cost driver is units produced.Last year's data are presented below:
 Month  Units  produced  Acministrative  Costs  January 32,500$24,288 February 37,70027,720 March 24,70017,820 April 40,30030,360 May 49,40037,290 June 42,90029,040 Juby 53,30032,670 August 45,50030,030 September 26,00020,460 October 48,10034,320 November 61,10040,920 December 54,60036,630\begin{array} { | l | r | r | } \hline \text { Month } & \begin{array} { r } \text { Units } \\\text { produced }\end{array} & \begin{array} { r } \text { Acministrative } \\\text { Costs }\end{array} \\\hline \text { January } & 32,500 & \$ 24,288 \\\hline \text { February } & 37,700 & 27,720 \\\hline \text { March } & 24,700 & 17,820 \\\hline \text { April } & 40,300 & 30,360 \\\hline \text { May } & 49,400 & 37,290 \\\hline \text { June } & 42,900 & 29,040 \\\hline \text { Juby } & 53,300 & 32,670 \\\hline \text { August } & 45,500 & 30,030 \\\hline \text { September } & 26,000 & 20,460 \\\hline \text { October } & 48,100 & 34,320 \\\hline \text { November } & 61,100 & 40,920 \\\hline \text { December } & 54,600 & 36,630 \\\hline\end{array}

 Yates Corp.wants to develop a cost equation for its administrative costs.The controller believes the appropriate cost driver is units produced.Last year's data are presented below:   \begin{array} { | l | r | r | }  \hline \text { Month } & \begin{array} { r }  \text { Units } \\ \text { produced } \end{array} & \begin{array} { r }  \text { Acministrative } \\ \text { Costs } \end{array} \\ \hline \text { January } & 32,500 & \$ 24,288 \\ \hline \text { February } & 37,700 & 27,720 \\ \hline \text { March } & 24,700 & 17,820 \\ \hline \text { April } & 40,300 & 30,360 \\ \hline \text { May } & 49,400 & 37,290 \\ \hline \text { June } & 42,900 & 29,040 \\ \hline \text { Juby } & 53,300 & 32,670 \\ \hline \text { August } & 45,500 & 30,030 \\ \hline \text { September } & 26,000 & 20,460 \\ \hline \text { October } & 48,100 & 34,320 \\ \hline \text { November } & 61,100 & 40,920 \\ \hline \text { December } & 54,600 & 36,630 \\ \hline \end{array}        Required: (a. )What is the equation for administrative costs using the regression analysis? (b. )Does the variable  units produced  have statistical significance? Explain.(c. )Prepare an estimate of administrative costs for a month when 30,000 units are produced.

Required:
(a. )What is the equation for administrative costs using the regression analysis?
(b. )Does the variable "units produced" have statistical significance? Explain.(c. )Prepare an estimate of administrative costs for a month when 30,000 units are produced.


Definitions:

Unions

Organizations formed by workers from related fields who join together to advocate for better working conditions, wages, and benefits.

Meatpacking Industry

A sector that involves the slaughtering, processing, packaging, and distribution of animals such as cattle, pigs, and chickens.

Meat Inspection Act

A United States Congress Act, passed in 1906, that works to prevent adulterated or misbranded meat and meat products from being sold as food and to ensure that meat and meat products are slaughtered and processed under sanitary conditions.

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