Explore BrainMass
Share

Explore BrainMass

    Cost driver analysis.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    See attachment for sample of graph and graph the month of April figures, please explain
    1. why you use the method you choose
    2. Are the cost more correlated with out units production or set up?

    Units Produced Cost Driver

    Month Units Produced Production Cost

    February 1950 $14900
    March 2050 $14950
    April* 800 $6500
    May 2250 $22500
    June 2650 $16000
    July 2750 $15500
    August 3000 $16500
    September 3500 $17500
    October 4200 $18000
    November 5500 $19500
    December 5750 $23500
    January 5850 $24000
    February 6000 $25500

    Number of Setups Cost Driver

    Month Number of Setups Production Cost

    February 1500 $14800
    March 1700 $15000
    April* 400 $7,000
    May 2100 $15500
    June 2200 $22000
    July 2500 $16000
    August 2750 $17500
    September 3000 $18000
    October 3500 $18500
    November 4000 $20000
    December 4200 $21000
    January 5000 $23500
    February 6000 $26550

    Driver = Setup or Unit

    3. Explain how you treated the April data.
    4. Review regression analysis. Is this method more or less precise then those we used in this task? Why?
    5. Which method would you recommend to management?

    © BrainMass Inc. brainmass.com October 9, 2019, 8:14 pm ad1c9bdddf
    https://brainmass.com/statistics/regression-analysis/cost-driver-analysis-144169

    Attachments

    Solution Summary

    solution contains explanation about various method of cost driver analysis .

    $2.19