WEEK Original Cost Driver Alternative Cost Driver

Machine-Hours Direct Manuf.Labor-Hours

(x) (X)
1 68 30
2 88 35
3 62 36
4 72 20
5 60 47
6 96 45
7 78 44
8 46 38
9 82 70
10 94 30
11 68 29
12 48 38
862 462

ESTIMATED

Y= $545.26 + $15.86 per machine-hours X number of machine-

1,600

1,400

1,200

1,000

800
Colum

600
 1,200

1,000

800
Colum

600

400

200

-
40 50 60 70 80 90 100

Cost driver: machine-hours ( X)

1,600

1,400

1,200

1,000

800
Colu

600

400

200

-
10 20 30 40 50 60 70 80
 -
10 20 30 40 50 60 70 80

Cost driver: Direct Manufacturing Labor-hours

Y = $744.67 + $7.72X
 Indirect Manuf.
Labor Cost
(Y)
1,190 46 710
1,211 48 963
1,004 60 770
917 62 1,004
770 68 1,190
1,456 68 752
1,180 72 917
710 78 1,180
1,316 82 1,316
1,032 88 1,211
752 94 1,032
963 96 1,456
12,501

number of machine-hours

Column G
 Column G

90 100

Column D

70 80
 70 80

bor-hours
WEEK Original Cost Driver Indirect Manuf.
Machine-Hours Labor Cost
(x) (Y)
1 68 1,190
2 88 1,211
3 62 1,004
4 72 917
5 60 770
6 96 1,456
7 78 1,180
8 46 710
9 82 1,316
10 94 1,032
11 68 752
12 48 963
862 12,501

ESTIMATED

Y= $545.26 + $15.86 per machine-hours X number of mach

1.2

0.8

0.6
Series1

0.4

0.2
 0.6
Series1

0.4

0.2

0
0.8 1 1.2 1.4 1.6 1.8 2

Cost driver: machine-hours ( X)

1,600

1,400

1,200

1,000

800
Series1

600

400

200

-
0 2 4 6 8 10 12 14

Cost driver: Direct Manufacturing Labor-hours

2 Y = $744.67 + $7.72X
1 Y= $545.26 + $15.86 per machine-hours X number of mach
s X number of machine-hours
abor-hours
s X number of machine-hours
 Alternative Cost Driver Indirect Manuf.
WEEK Direct Manuf.Labor-Hours Labor Cost
(X) (Y)
1 30 1,190
2 35 1,211
3 36 1,004
4 20 917
5 47 770
6 45 1,456
7 44 1,180
8 38 710
9 70 1,316
10 30 1,032
11 29 752
12 38 963
462 12,501

1.2

0.8

0.6
Series1
0.8

0.6
Series1

0.4

0.2

0
0.8 1 1.2 1.4 1.6 1.8 2

1,600

1,400

1,200

1,000

800
Column C

600

400

200

-
10 20 30 40 50 60 70 80
-
10 20 30 40 50 60 70 80
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.72
R Square 0.52
Adjusted R Square 0.47
Standard Error 170.54
Observations 12
ANOVA
df
Regression 1
Residual 10
Total 11

Coefficients
Intercept 300.98
X Variable 1 10.31

Y = 300.98 + 10.31X

Suppose the manager is interested in evaluating wh

led to changes in the production process and resulte
reduced indirect manufacturing labor costs, such as
quality control.

Estimation the regression equation:

Y = $545.26 + (15.86 per mach
The constant: 300.98 < $ 545.26
The slope : 10.31 < 15.86
 X:Machine hours
Y: Indirect Manufacturing Labor Cost

SS MS F
316874.121126524 316874.1211 10.8957301
290824.128873476 29082.41289
607698.25

Standard Error t Stat P-value

229.75 1.31 0.22
3.12 3.30 0.0080

R Square 0.52

ested in evaluating whether recent strategic decisions tha

on process and resulted in the data in exhibit 10-3 have
g labor costs, such assipervision, maintenance, and

ation:
26 + (15.86 per machine-hour x number of machine-hour
the new process has decreased indirect
manufacturing labor cost.
uring Labor Cost

Significance F
0.0080

egic decisions that

xhibit 10-3 have
enance, and

of machine-hours)
reased indirect
SUMMARY OUTPUT
COST DRIVER: DLH
Regression Statistics
Multiple R 0.412068 Y = 744,67 +7,72X sig F = 0,1832 > 0,05, maka persamaan tdk sig
R Square 0.1698
Adjusted R 0.08678 COST DRIVER: MH
Standard E 224.6132 Y= 300,98 + 10,31X sig F = 0,008 , maka persamaan sig
Observatio 12

ANOVA
df SS MS F Significance F
Regression 1 103187.4 103187.4 2.045296 0.18317
Residual 10 504510.9 50451.09
Total 11 607698.3

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%
Intercept 744.6691 217.6132 3.421985 0.006526 259.7966 1229.542
X Variable 7.716388 5.395553 1.430138 0.18317 -4.305654 19.73843
10.17
The Pacific corporation operates car rental agencies at more than 20 airports.
Customers can choose from one of the three contracts for car rentals of one
day or less:
Contract 1: $50 for a day
Contract 2 : $30 for a day plus $0.20 per mile traveled
Contract 3: $1 per mile traveled
Required:
1. Plot separate graphs of each of the three contract, with costs on the vertical
axis and miles traveled on the horizontal axis.
2. Express each contract as a linear cost function of the form Y = a + bX
2. Identify each contract as a variable, fixed, or mixed-cost function.

2. Express each contract as a linear cost function of the form Y=a + bX

Contract 1 : Y = $50
Contract 2 : Y = $30 + $0.20X
Contract 3 : Y = $1X

3. Identify each contract as a variable, fixed, or mixed-cost function

Contract 1 : Fix Cost
Contract 2 : Y = Mixed-Cost / Semi-Variable Cost
Contract 3 : Y = Variable Cost

Miles Contract 1 Contract 2

0 50 30
50 50 40
100 50 50
150 50 60
200 50 70
an 20 airports.
Contract 1 : Y = $50
entals of one
$200
$180
$160
$140
$120
$100

osts on the vertical $80

$60
$40
m Y = a + bX
$20
$-
0 20 40 60 80 100 120

m Y=a + bX
Contract 2
$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
Contact 3 $-
0 20 40 60 80 100 120
0
50
100
150
Contract 3
200
$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
$-
0 20 40 60 80 100 120
$120
$100
$80
$60
$40
$20
$-
0 20 40 60 80 100 120
 Contract 1 : Y = $50

60 80 100 120 140 160 180 200

Contract 2

60 80 100 120 140 160 180 200

Contract 3

60 80 100 120 140 160 180 200

60 80 100 120 140 160 180 200
No. 10 - 20
Reisen travel offers helicopters from Jakarta to Surabaya.
Each of its 10 helicopters makes between 1,000 and 2,000 round-trips
per year. The record indicate that a helicopter that has made 1,000 round
trips in the year incurs an average operating cost of $300 per round-trip, and
one that has made 2,000 round trip in the year incurs an average operating
cost of $250 per round-trip.
1.Using high-low method, estimate the linear relationship y = a +bx, where
y is the total annual operating cost, and x is the number of round-trips it
makes to Surabaya during the year.
2, Give examples of costs that would be included in a and in b
3. If Reisen Travel expects each helicopter to make, on average, 1,200
round-trips in the coming year, what should its estimated operating
budget for the helicopter fleet be?

1. Volume Cost
High Level of Activity 2000 500000
Low Level of Activity 1000 300000
Differrence 1000 200000

Slope Coefficien (b) = Different in Cost/Different in Activity Level

Slope Coefficien (b) = 200

Y = a + bX <=> a = Y - bX
a = 500000 - ( 200* 2000 )
a = 500000 - ( 400000 )
a = 100000

Y = a + bX <=> a = Y - bX
a = 300000 - ( 200* 1000 )
a = 300000 - ( 200000 )
a = 100000

2. Give examples of costs that would be included in a and in b

a = fixed cost
contoh : seperti biaya sewa helicopter, gaji pilot

b = variable cost
contoh ; biaya bensin, biaya perawatan dan perbaikan mesin, biaya p

3. jika X = 1,200, operating costnya :

Y = $100.000 + 200X
Y = $100.000 + ( 200*1,200 )
Y = $100.000 + ( 240,000 )
Y = $340,000
Dikarenakan Reisen travel memiliki 10 helikopter, maka estimated operating budgetnya sebe
Activity Level

Y = $100.000 + 200X
0 - ( 200* 2000 )
0 - ( 400000 )

0 - ( 200* 1000 )
0 - ( 200000 )

copter, gaji pilot

rawatan dan perbaikan mesin, biaya pendaratan (Landing fees),

a estimated operating budgetnya sebesar 10 x $ 340,000 = $3,400,000