Question:1. Simple Regression: Examine the relationship between the number of units produced and the total manufacturing overhead by performing Regression Analysis and generating a “Line-fit” plot. Consider the following in your analysis:

a. What is the coefficient of correlation and what does it say about the relationship?

b. What is the coefficient of determination and what does it say about the relationship?

c. What is the equation of this line? ( y = mx + b), where Total Cost = (Variable Cost Per Unit * Units) + Total Fixed Cost.

2. Multiple Regression: Examine the relationship between the number of units produced and the number of production batches and their effect on total manufacturing overhead. Consider the following in your report:

a. What is the coefficient of determination? How did multiple (versus single) regression help/hurt the r-squared?

b. What is the estimated Variable Manufacturing Overhead Per Unit?

c. What is the estimated Total Fixed Manufacturing Overhead?

3. Break-Even Analysis: Calculate the following:

a. What is the average per Unit Direct Materials Cost?

b. What is the average per Unit Direct Labor Cost?

c. Assume variable General and Administrative expenses are $12 per unit. What is the total variable cost per unit?

d. Assume total fixed General and Administrative expenses are $2,000 per month. What is the total fixed cost per month?

e. Assume sales price per unit is $400. What is the Contribution Margin Per Unit?

f. What is the Break Even Point in Units?

Data for Acct. 306 Assessment Project—Spring 2017
Queens Lamps Inc specializes in manufacturing custom designed lamps. It is a low volume manufacturer.
Its cost data for four years is as follows.
Sales Price Per Unit: $ 400.00
Variable Selling and General Expenses per unit
Monthly Fixed Selling and General Expenses Observation
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec Year
20X1
20X1
20X1
20X1
20X1
20X1
20X1
20X1
20X1
20X1
20X1
20X1
20X2
20X2
20X2
20X2
20X2
20X2
20X2
20X2
20X2
20X2
20X2
20X2 $
$ 12.00
2,000 Number of
Direct
Production
Units Manufacturing Machine Material
Batches Produced
Overhead
Hours
Cost
8
121
10,991
1,557
3,703
4
103
9,724
1,259
3,059
5
82
9,830
970
2,411
7
123
11,006
1,631
3,653
10
95
10,413
1,235
2,850
5
100
10,403
1,391
2,970
11
125
11,307
1,479
3,750
5
68
9,716
955
2,060
3
130
10,310
1,808
3,822
6
80
9,622
988
2,448
4
124
10,237
1,483
3,683
10
128
11,120
1,597
3,802
5
121
10,311
1,715
3,630
7
71
10,103
951
2,173
7
122
10,777
1,507
3,587
10
35
9,822
473
1,050
4
116
10,527
1,493
3,480
8
44
9,331
578
1,294
11
71
10,697
886
2,087
6
57
9,767
771
1,727
10
56
10,241
692
1,697
5
73
9,695
940
2,146
6
128
10,746
1,498
3,802
9
114
10,790
1,615
3,420 w volume manufacturer. Direct
Labor
Cost
4,646
4,408
3,674
4,723
4,028
4,280
5,750
2,530
4,992
3,520
4,613
5,530
4,453
3,039
4,197
1,330
4,083
2,006
2,698
2,440
2,419
3,066
5,171
4,697