Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ethan manufacturing incorporated produces floor ma

Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you...

50.1K

Verified Solution

Question

Accounting

Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours:

Month Maintenance Costs Machine Hours
1 $ 2,600 1,690
2 2,760 1,770
3 2,910 1,850
4 3,020 1,870
5 3,100 1,900
6 3,070 1,880
7 3,010 1,860
8 2,850 1,840
9 2,620 1,700
10 2,220 1,100
11 2,230 1,300
12 2,450 1,590

Required:

1. What is the cost equation for maintenance costs using the high-low method?

2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The comparative balance sheet of Navaria Inc. for December 31,20Y3 and 20Y2, is as...

Accounting
Q

B Use the diagram below to start of replication The DNA Replication diagram is incomplete...

Biology
Q

Question 5 Points 2 What shifted the balance of power in Europe in the 1860s...

Biology
Q

If frequency of incident light is constant then choose the correct option Photo current Maximum...

Physics
Q

Apparent weight of a man in lift Case I If the lift is at rest...

Physics
Q

The following three independent sets of facts relate to contingent liabilities 1. In...

Accounting
Q

Entries for Materials \table[[Fabric,$23,000

Accounting
Q

Following is the adjusted trial balance, with accounts in alphabetical order, for TRN Magazine as...

Accounting
Q

\table[[,2021,2020,2019,2018,2017],[Sales,$460,400,$298,961,$238,216,$170,154,$123,300

Accounting
Q

do statement of retained earning Required: On the following pages, prepare the...

Accounting
Q

ACCT 254 Impact of Error Assignment The Jacobson Manufacturing Company was started at...

Accounting
Q

5 573 800 The before-tax cash flow from the sale of the property is expected...

Accounting