Solution manual managerial accounting 8e by hansen mowen ch 3

To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com CHAPTER ACTIVITY COST BEHAVIOR QUESTIONS FOR WRITING AND DISCUSSION Knowledge of cost behavior allows a manager to assess changes in costs that result from changes in activity This allows a manager to assess the effects of choices that change activity For example, if excess capacity exists, bids that at least cover variable costs may be totally appropriate Knowing what costs are variable and what costs are fixed can help a manager make better bids The longer the time period, the more likely that a cost will be variable The short run is a period of time for which at least one cost is fixed In the long run, all costs are variable Resource spending is the cost of acquiring the capacity to perform an activity, whereas resource usage is the amount of activity actually used It is possible to use less of the activity than what is supplied Only the cost of the activity actually used should be assigned to products Flexible resources are those acquired from outside sources and not involve any longterm commitment for any given amount of resource Thus, the cost of these resources increases as the demand for them increases, and they are variable costs (varying in proportion to the associated activity driver) Committed resources are acquired by the use of either explicit or implicit contracts to obtain a given quantity of resources, regardless of whether the quantity of resource available is fully used or not For multiperiod commitments, the cost of these resources essentially corresponds to committed fixed costs Other resources acquired in advance are short term in nature and essentially correspond to discretionary fixed costs Committed fixed costs are those incurred for the acquisition of long-term activity capacity and are not subject to change in the short run Annual resource expenditure is independent of actual usage For example, the cost of a factory building is a committed fixed cost Discretionary fixed costs are those incurred for the acquisition of shortterm activity capacity, the levels of which can be altered quickly In the short run, re- 41 source expenditure is also independent of actual activity usage An engineer’s salary is an example of such an expenditure A variable cost increases in direct proportion to changes in activity usage A one-unit increase in activity usage produces an increase in cost A step cost, however, increases only as activity usage changes in small blocks or chunks An increase in cost requires an increase in several units of activity When a step cost changes over relatively narrow ranges of activity, it may be more convenient to treat it as a variable cost A step cost with narrow steps can be treated as variable, while one with wide steps is typically treated as fixed An activity rate is the resource expenditure for an activity divided by the activity’s practical capacity 10 Mixed costs are usually reported in total in the accounting records How much of the cost is fixed and how much is variable is unknown and must be estimated 11 A scattergraph allows a visual portrayal of the relationship between cost and activity It reveals to the investigator whether a relationship may exist and, if so, whether a linear function can be used to approximate the relationship A scattergraph also can assist in identifying any outliers 12 Managers can use their knowledge of cost relationships to estimate fixed and variable components A scattergraph can be used as an aid in this process From a scattergraph, a manager can select two points that best represent the relationship These two points can then be used to derive a linear cost formula The high-low method tells the manager which two points to select to compute the linear cost formula The selection of these two points is not left to judgment 13 Because the scatterplot method is not restricted to the high and low points, it is possible to select two points that better represent the relationship between activity and costs, To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com producing a better estimate of fixed and variable costs A scattergraph also identifies outliers that could represent a high or low point that is an aberration The main advantage of the high-low method is that it removes subjectivity from the choice process The same line will be produced by two different people 14 Assuming that the scattergraph reveals that a linear cost function is suitable, then the method of least squares selects a line that best fits the data points The method also provides a measure of goodness of fit so that the strength of the relationship between cost and activity can be assessed 15 The best-fitting line is the one that is “closest” to the data points This is usually measured by the line that has the smallest sum of squared deviations 16 No The best-fitting line may not explain much of the total cost variability There must be a strong relationship as well 17 The coefficient of determination is the percentage of total variability in costs explained 42 by the activity As such, it is a measure of the goodness of fit, the strength of the relationship between cost and activity 18 The correlation coefficient is the square root of the coefficient of determination The correlation coefficient reveals the direction of the relationship in addition to the strength of the relationship 19 If the variation in cost is not well explained by activity usage (the coefficient of determination is low) as measured by a single driver, then other explanatory variables may be needed to build a good cost formula 20 If the mixed costs are immaterial, then the method of decomposition is unimportant Furthermore, sometimes managerial judgment may be more useful for assigning costs than the use of formal statistical methodology To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com EXERCISES 3–1 Number of Units 50,000 100,000 150,000 200,000 250,000 Total Cost $120,000 120,000 120,000 120,000 120,000 120,000 Supervision cost is strictly fixed Cost per Unit NA $2.40 1.20 80 60 48 3–2 Miles Traveled $ 2,000 600 4,000 1,200 6,000 1,800 8,000 2,400 10,000 3,000 Total Cost $0.00 0.30* 0.30 0.30 0.30 0.30 *$1,200/4,000 or $3,000/10,000 = $.30 The cost of fuel for the delivery activity is strictly variable 43 Cost per Mile To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–3 Depreciation Cost Graph of Truck Depreciation $250,000 $200,000 $150,000 $100,000 $50,000 $0 10 20 30 40 50 60 70 80 90 100 Cubic Yards of Concrete (in thousands) Cost of raw materials Graph of Raw Materials Cost 3,000,000 2,000,000 Series2 1,000,000 Cubic yards of concrete Truck depreciation: Fixed cost Raw materials cost: Variable cost 3-4 Number of Units 10,000 20,000 30,000 40,000 50,000 Total Cost $10,000 10,000 10,000 20,000 20,000 30,000 44 Cost per Unit NA $1.00 0.50 0.67 0.50 0.60 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Forming machines rental cost is a step cost 3-5 Graph of Machining Direct Labor Cost Cost of Direct Labor 350000 300000 250000 200000 150000 100000 50000 0 1000 2000 3000 4000 5000 Number of units The direct labor cost in the machining department is a step cost (with narrow steps) Cost of Supervision Graph of Machining Department Supervision Cost 150000 100000 50000 0 1000 2000 3000 4000 5000 Number of units The cost of supervision for the machining department is a step cost (with wide steps) 45 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Direct labor cost increase = $144,000 – $108,000 = $36,000 Supervision increase = $80,000 – $40,000 = $40,000 3-6 Cost Category Variable Cost Technician salaries Laboratory facility Laboratory equipment Chemicals and other supplies Discretionary Fixed Cost X Committed Fixed Cost X X X 3–7 Resource Jet rental Hotel rooms Buffet Favor package Buses Flexible/Committed Committed Committed Flexible Flexible Committed Cost Behavior Fixed Fixed Variable Variable Step 3–8 Resource Plastic1 Direct labor and variable overhead2 Mold sets3 Other facility costs4 Total Total Cost $ 10,800 8,000 20,000 10,000 $48,800 Unit Cost $0.027 0.020 0.050 0.025 $0.122 0.90 × $0.03 × 400,000 = $10,800; $10,800/400,000 = $0.027 $0.02 × 400,000 = $8,000; $8,000/400,000 = $0.02 $5,000 × quarters = $20,000; $20,000/400,000 = $0.05 $10,000; $10,000/400,000 = $0.025 2 Plastic, direct labor, and variable overhead are flexible resources; molds and other facility costs are committed resources The cost of plastic, direct labor, and variable overhead are strictly variable The cost of the molds is fixed for 46 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com the particular action figure being produced; it is a step cost for the production of action figures in general Other facility costs are strictly fixed 3–9 Total maintenance cost = $24,000 + $0.30(200,000) = $84,000 Total fixed maintenance cost = $24,000 Total variable maintenance cost = $0.30(200,000) = $60,000 Total maintenance cost per unit = [$24,000 + $0.30(200,000)]/200,000 = $84,000/200,000 = $0.42 Fixed maintenance cost per unit = $24,000/200,000 = $0.12 Variable maintenance cost per unit = $0.30 Requirements1-6 repeated: Total maintenance cost = $24,000 + $0.30(100,000) = $54,000 Total fixed maintenance cost = $24,000 Total variable maintenance cost = $0.30(100,000) = $30,000 Total maintenance cost per unit = [$24,000 + $0.30(100,000)]/100,000 = $54,000/100,000 = $0.54 Fixed maintenance cost per unit = $24,000/100,000 = $0.24 Variable maintenance cost per unit = $0.30 47 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–10 Committed resources: trucks and technicians’ salaries Flexible resources: supplies, small tools, and fuel Variable activity rate = $420,000/35,000 = $12 per call Fixed activity rate = $600,000*/40,000** = $15 per call Total cost of one call = $12 + $15 = $27 per call *($24,000 × 20) + ($10,000 × 12); **8 × 250 × 20 Activity availability = Calls available = 40,000 calls = Total cost of committed resources $600,000 $600,000 Activity usage Calls made 35,000 calls + Unused capacity + Unmade calls + 5,000 calls Cost of = activity used + = ($15 × 35,000) + = $525,000 + Cost of unused capacity ($15 × 5,000) $75,000 Note: The analysis is restricted to committed resources, since only these resources will ever have any unused capacity 48 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–11 Committed resource charges: monthly fee, activation fee, cancellation fee (if triggered by contract cancellation prior to one year) Flexible resource charges: all additional charges for airtime, long distance and roaming Plan 1: Minutes available 60 minutes = = Minutes used 45 minutes + + Unused minutes 15 minutes Plan 2: Minutes available 120 minutes = = Minutes used 45 minutes + + Unused minutes 75 minutes Plan is more cost effective Jana will have some unused capacity (on average, 15 minutes a month), and the overall cost will be lower by $10 per month Plan 1*: Minutes available 60 minutes = = Minutes used 90 minutes + + Unused minutes (− 30) minutes Plan 1*: Minutes available = 60 minutes = Additional minutes = Minutes used 60 minutes 30 minutes + + Unused minutes minutes *There are a number of ways to illustrate the use of minutes with Plan Here are two possibilities The problem, of course, is that all included monthly minutes are used, and Jana must purchase additional minutes Plan 2: Minutes available 120 minutes = = Minutes used 90 minutes + + Unused minutes 30 minutes Plan is now more cost effective, as the monthly cost is $30 Under Plan 1, Jana will pay $20 plus $30 (30 minutes × $1.00) or $50 per month (The $1.00 additional charge includes the airtime and regional roaming charge.) 49 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3-12 Graph of Cost of Giving Opening Shows 8000 7000 Cost 6000 5000 4000 3000 2000 1000 0 10 15 Number of opening shows This is a strictly variable cost Graph of Cost of Running the Gallery 100000 Cost 80000 60000 40000 20000 0 10 15 20 Number of opening shows This is a strictly fixed cost 50 20 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com = $19,800 + $55,800 = $75,600 Receiving cost for the year = 12($6,600) + $12(18,000) = $79,200 + $216,000 = $295,200 Receiving cost = $3,212 + $15.15 × Number of receiving orders Receiving cost = $3,212 + $15.15(1,475) = $25,558 Receiving cost for the quarter = 3($3,212) + $15.15(4,650) = $9,636 + $70,448 = $80,084 Receiving cost for the year = 12($3,212) + $15.15(18,000) = $38,544 + $272,700 = $311,244 3-22 Results of regressions: 10 Months Data 12 Months Data Intercept 3,212.121 3,820 Slope 15.15152 15.10 0.8485 0.7451 R2 60 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Receiving cost Scattergraph of Receiving Activity 12 Months Data 35000 30000 25000 20000 15000 10000 5000 0 500 1000 1500 2000 Number of receiving orders The point for the 11th month (1,200 receiving orders and $28,000 total receiving cost) appears to be an outlier Since the cost was so much higher in this month due to an event that is not expected to happen again, this data point could easily be dropped Then, data from the 11 remaining months could be used to develop a cost formula for receiving cost 61 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Results for the method of least squares after dropping month 11 SUMMARY OUTPUT Regression Statistics Multiple R 0.926737 R Square 0.858841 Adjusted R Square 0.843157 2051.781 Standard Error Observations 11 ANOVA df Regression Residual Total 10 SS 2.31E+08 37888233 2.68E+08 Intercept X Variable Coefficients 3168.56 15.17946 Standard Error 2565.262 2.051314 MS 2.31E+08 4209804 F 54.7581 t Stat 1.23518 7.399872 P-value 0.248035 4.1E-05 Significance F 4.1E-05 Lower 95% -2634.47 10.53906 Upper 95% 8971.589 19.81986 Lower 95.0% -2634.47 10.53906 Upper 95.0% 8971.589 19.81986 Receiving cost = $3,168.56 + $15.18 × Number of receiving orders Predicted receiving cost for a month = $3,168.56 + $15.18(1,475) = $25,559.06 The regression run on the 11 months of data from “typical” months appears to be better than the one for all 12 months R2 is higher for the regression without the outlier (85.88 percent versus 74.512 percent), and the scattergraph gives Joseph confidence that the data without the outlier describe a relatively linear relationship Since the storm damage is not expected to recur, month 11 can safely be dropped from a regression meant to help predict future receiving cost 62 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–23 Salaries: Senior accountant—fixed Office assistant—fixed Internet and software subscriptions—mixed Consulting by senior partner—variable Depreciation (equipment)—fixed Supplies—mixed Administration—fixed Rent (offices)—fixed Utilities—mixed Internet and software subscriptions: V = (Y2 – Y1)/(X2 – X1) = ($850 – $700)/(150 – 120) = $5 per hour F = Y2 – VX2 = $850 – ($5)(150) = $100 Consulting by senior partner: V = (Y2 – Y1)/(X2 – X1) = ($1,500 – $1,200)/(150 – 120) = $10 per hour F = Y2 – VX2 = $1,500 – ($10)(150) = $0 Supplies: V = (Y2 – Y1)/(X2 – X1) = ($1,100 – $905)/(150 – 120) = $6.50 per hour F = Y2 – VX2 = $1,100 – ($6.50)(150) = $125 Utilities: V = (Y2 – Y1)/(X2 – X1) = ($365 – $332)/(150 – 120) = $1.10 per hour F = Y2 – VX2 = $365 – ($1.10)(150) = $200 63 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–23 Concluded Unit Variable Cost Fixed Salaries: Senior accountant Office assistant Internet and subscriptions Consulting Depreciation (equipment) Supplies Administration Rent (offices) Utilities Total cost $2,500 1,200 100 — 2,400 125 500 2,000 200 $9,025 $ — — 5.00 10.00 — 6.50 — — 1.10 $22.60 Thus, total clinic cost = $9,025 + $22.60/professional hour For 140 professional hours: Clinic cost = $9,025 + $22.60(140) = $12,189 Charge per hour = $12,189/140 = $87.06 Fixed charge per hour = $9,025/140 = $64.46 Variable charge per hour = $22.60 For 170 professional hours: Charge/day = $9,025/170 + $22.60 = $53.09 + $22.60 = $75.69 The charge drops because the fixed costs are spread over more professional hours 64 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–24 High (1,700, $21,000); Low (700, $15,000) V = (Y2 – Y1)/(X2 – X1) = ($21,000 – $15,000)/(1,700 – 700) = $6 per setup F = Y2 – VX2 = $21,000 – ($6)(1,700) = $10,800 Y = $10,800 + $6X Output of spreadsheet regression routine with number of setups as the independent variable: Constant 4512.98701298698 Std Err of Y Est 3456.24317476605 R Squared 0.633710482694768 No of Observations 10 Degrees of Freedom X Coefficient(s) 13.3766233766234 Std Err of Coef 3.59557461331427 V = $13.38 per receiving order (rounded) F = $4,513 (rounded) Y = $4,513 + $13.38X R2 = 0.634, or 63.4% Setups explain about 63.4 percent of the variability in order filling cost, providing evidence that Brett’s choice of a cost driver is reasonable However, other drivers may need to be considered because 63.4 percent may not be strong enough to justify the use of only receiving orders 65 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–24 Continued Regression with setup hours as the independent variable: Constant 5632.28109733183 Std Err of Y Est 2390.10628259277 R Squared 0.824833789433823 No of Observations 10 Degrees of Freedom X Coefficient(s) 4.49642991356633 Std Err of Coef 7.32596 V = $4.50 per setup hour F = $5,632 (rounded) Y = $5,632 + $4.50X R2 = 0.825, or 82.5% Setup hours explain about 82.5 percent of the variability in order filling cost This is a better result than that of setups and should convince Brett to try multiple regression 66 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–24 Concluded Regression routine with pounds of material and number of receiving orders as the independent variables: Constant 752.104072925631 Std Err of Y Est 1350.46286973443 R Squared 0.951068418023306 No of Observations 10 Degrees of Freedom X Coefficient(s) 3.33883151096915 7.14702865269395 Std Err of Coef 0.495524841198368 1.68182916088492 V1 V2 F Y = $3.34 per pound of material delivered (rounded) = $7.147 per receiving order (rounded) = $752 (rounded) = $752 + $3.34a + $7.147b R2 = 0.95, or 95% Multiple regression with both variables explains 95 percent of the variability in receiving cost This is the best result 3–25 The order should cover the variable costs described in the cost formulas These variable costs represent flexible resources Materials ($94 × 20,000) Labor ($16 × 20,000) Variable overhead ($80 × 20,000) Variable selling ($7 × 20,000) Total additional resource spending Divided by units produced Total unit variable cost $1,880,000 320,000 1,600,000 140,000 $3,940,000 ÷ 20,000 $ 197 Garner should accept the order because it would cover total variable costs and increase income by $15 per unit ($212 – $197), for a total increase of $300,000 67 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–25 Concluded The correlation coefficients indicate the reliability of the cost formulas Of the four formulas, overhead activity may be a problem A correlation coefficient of 0.75 means that only about 75 percent of the variability on overhead cost is explained by direct labor hours This should have a bearing on the answer to Requirement because if the percentage is low, there are activity drivers other than direct labor hours that are affecting variability in overhead cost What these drivers are and how resource spending would change need to be known before a sound decision can be made Resource spending attributable to order: Material ($94 × 20,000) Labor ($16 × 20,000) Variable overhead: ($85 × 20,000) ($5,000 × 12) ($300 × 600) Variable selling ($7 × 20,000) Total additional resource spending Divided by units produced Total unit variable cost $ 1,880,000 320,000 1,700,000 60,000 180,000 140,000 $ 4,280,000 ÷ 20,000 $ 214 The order would not be accepted now because it does not cover the variable activity costs Each unit would lose $2 ($212 – $214) It would also be useful to know the step-cost functions for any activities that have resources acquired in advance of usage on a short-term basis It is possible that there may not be enough unused activity capacity to handle the special order, and resource spending may also be affected by a need (which, in this case, would be unexpected) to expand activity capacity 68 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–26 High (2,000; $120,000); Low (1,200; $52,000) V = ($120,000 – $52,000)/(2,000 – 1,200) = $85/nursing hour F = $52,000 – ($85 × 1,200) = –$50,000 This problem illustrates how the high-low method can be misleading when cost behavior patterns have changed Fortunately, in this case, the negative value of fixed cost tells us that something is wrong a Output of spreadsheet multiple regression routine: Constant 236.211171346831 Std Err of Y Est 1788.59942408259 R Squared 0.993939842186014 No of Observations 14 Degrees of Freedom 11 X Coefficient(s) 40.8752113255057 35307.5122042085 Std Err of Coef 2.2207348945557 970.201096681915 b Output of spreadsheet regression routine on 2008 data: Constant 10081.3333333337 Std Err of Y Est 94.8068211329403 R Squared 0.999887905585866 No of Observations Degrees of Freedom X Coefficient(s) 34.9533333333331 Std Err of Coef 0.151087766637518 69 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–26 Concluded c Output of spreadsheet regression routine on 2009 data: Constant 19964.2403242688 Std Err of Y Est 12.0521931978647 R Squared 0.999999089146329 No of Observations Degrees of Freedom X Coefficient(s) Std Err of Coef 50.0216788702923 0.0238700194326353 While each regression has a high R2, the multiple regression gives unacceptable results Notice the $35,308 coefficient on the independent variable “changes.” Yet, the increased fixed cost was only $10,000 per month Regression (c) gives more reasonable results The intercept term, $19,964, is roughly $10,000 higher than the intercept term for Regression (b), as expected So, the hospital should use Regression (c) to budget for the rest of the year 3–27 Output of spreadsheet regression with pounds as independent variable: Constant 4,997.2877 Std Err of Y Est 571.36 R Squared 0.9315 No of Observations Degrees of Freedom X Coefficient(s) 2.5069 Std Err of Coef 0.257 Budgeted setup cost at 5,200 pounds: Y = $4,997.29 + $2.51(5,200) = $18,033.24 70 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–27 Continued Output of spreadsheet regression with number of orders as the independent variable: Constant 17,485.8088 Std Err of Y Est 2168.03 R Squared 0.01327 No of Observations Degrees of Freedom X Coefficient(s) 6.0507 Std Err of Coef 19.718 Budgeted setup cost for 160 orders: Y = $17,485.81 + $6.05(160) = $18,453.81 The regression equation based on pounds is better because the coefficient of determination is much higher Pounds explain about 93 percent of the variation in receiving costs, while number of orders explains only 1.3 percent of the variation in receiving costs 71 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 3–27 Concluded Output of spreadsheet for multiple regression: Constant 2986.529 Std Err of Y Est 99.67 R Squared 0.9982 No of Observations Degrees of Freedom X Coefficient(s) 2.6056 13.7142 Std Err of Coef 0.0453 0.9163 Y = $2,986.53 + $2.61(5,200) + $13.71(160) = $18,729.81 The explanatory power of both variables is very high Yet, pounds seems to explain most of the variation, and the use of one driver would vastly simplify budgeting and product costing The increased complexity is probably not worth adding the second driver 72 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com MANAGERIAL DECISION CASE 3–28 Jackie violated the standard of confidentiality Management accountants should not disclose confidential information acquired in the course of their work unless legally obligated to so Her motives for disclosing the confidential information apparently were intended to further her personal interests Management accountants are prohibited from using confidential information for unethical advantages In addition, some could argue that Jackie also violated the standard of integrity Conflict of interest, receipt of favors or gifts, and subversion of an organization’s pursuit of its legitimate objectives all could be in violation Assuming that the data were acquired illicitly, Brindon’s instincts were on target To analyze the data and be party to its use would most certainly violate the standard of integrity Management accountants should not engage in or support any activity that would discredit the profession In addition, Brindon would violate the standard of confidentiality if he chose to analyze the data Management accountants should refrain from using confidential information acquired in the course of their work for unethical advantage, either personally or through a third party (II-3) RESEARCH ASSIGNMENT 3–29 Answers will vary 73 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 74 ... Constant 10081 .33 333 333 37 Std Err of Y Est 94.806821 132 94 03 R Squared 0.999887905585866 No of Observations Degrees of Freedom X Coefficient(s) 34 .9 533 333 333 331 Std Err of Coef 0.151087766 637 518 69... Constant 5 632 .28109 733 1 83 Std Err of Y Est 239 0.10628259277 R Squared 0.824 833 789 433 8 23 No of Observations 10 Degrees of Freedom X Coefficient(s) 4.4964299 135 6 633 Std Err of Coef 7 .32 596 V = $4.50... Std Err of Y Est 34 56.2 431 7476605 R Squared 0. 633 710482694768 No of Observations 10 Degrees of Freedom X Coefficient(s) 13. 3766 233 766 234 Std Err of Coef 3. 5955746 133 1427 V = $ 13. 38 per receiving