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LO2,3 E14-23. Selecting an Independent Variable: Scatter Diagrams Brenthaven produces protective cases for mobile...

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Accounting

LO2,3 E14-23. Selecting an Independent Variable: Scatter Diagrams
Brenthaven produces protective cases for mobile technology. The cases are sold internationally,
online, and through retail partners. Presented is information on production costs and inventory
changes for five recent months:
C) Cambridge Business Publishers
Chapter 14 Cost Behavior, Activity Analysis, and Cost Estimation
REQUIRED
a. With the aid of scatter diagrams, determine whether units sold or units manufactured is a better
predictor of manufacturing costs.
b. Prepare an explanation for your answer to requirement (a).
c. Which independent variable, units sold or units manufactured, should be a better predictor of
selling costs? Why?
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