# Accounting & Statistics

Pages: 10 (2382 words) Published: March 3, 2013
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STUDENT NAME PROGRAMME MODULE TITLE MODULE TUTOR MODULE CREDITS ASSIGNMENT TITLE HANDOUT DATE 15/11/2012 PENALTIES FOR LATE SUBMISSION

Kostas Papanikos
Master In Business Administration Managing accounting and Statistics Dr Kounis Leo 15 Assignment SUBMISSION DATE 15/12/2012 CONTRIBUTION TO OVERALL MODULE 50%

Up to one week late: Pass maximum grade awarded. Over one week late: Fail grade awarded

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YOU MUST TYPE ON PAGE 2 OF YOUR ASSIGNMENT THE FOLLOWING :

“I certify this work is the result of my own investigations, except where otherwise stated. references have been duly cited”

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Signature …………………………………………………………………………………

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ASSIGNMENT (25 POINTS FOR EACH QUESTION) 1. a). Table 1 shows the index of industrial production of all US manufacturers for the years 1974-1985 with 1977 as the base period. Obtain a new index with: a. 1979 and b. 1974-1976 as the base Year Index of industrial production (1974=100) Table 1: Index of industrial US production, © Survey of Current Business 1974 93 1975 85 1976 93 1977 100 1978 107 1979 111 1980 109 1981 111 1982 103 1983 109 1984 122 1985 125

b). Table 2 shows a country’s production of wheat (in millions of litres) for the years 1977-1985. Reduce the table’s data to quantity relatives by using: c. 1982, and d. 1977-1980 as the base Year Production of wheat Table 2: Country’s production of wheat (in millions of litres) 1977 2046 1978 1776 1979 2134 1980 2380 1981 2785 1982 2765 1983 2420 1984 2595 1985 2425

2. The variable X1 is thought to be a linear function of X2 and X3. A sample of 12 pairs of readings (X2, X3) produced the values of X1 shown in table 3. X1 X2 X3 64 57 8 71 59 10 53 49 6 67 62 11 55 51 8 58 50 7 77 55 10 57 48 9 56 52 10 51 42 6 76 61 12 68 57 9

Table 3: Relations of readings as opposed to X1, X2, X3

a.

Find the least-squares regression equation of X1, X2, X3.

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b. Determine the estimated values of X1 from the given values of X2 and X3. c. Estimate X1 when X2 = 54 and X3 = 9.

3. Oldham Ltd. is a small manufacturing company producing a variety of pumps for the oil

industry. It operates from one factory that is geographically separated from its head office. The components for the pumps are assembled in the assembling department; they are then passed through to the finishing department where they are painted and packed. There are three (3) service cost centres: administration, stores and work study. The following costs were calculated for the year to 30 June 2006: Allocated cost centre overhead costs Administration Assembling Finishing Stores Work study £000 70 25 9 8 18

Table 4: Allocated cost centre overhead costs

Additional Information: 1. The allocated cost centre costs are all considered to be indirect costs as far as specific units are concerned. 2. During the year to 30 June 2006, 35k M/C hrs were worked in the assembling department, and 60k direct labour hrs in the finishing department. 3. The number of employees working in each department was as shown in table 3: Administration Assembling Finishing Stores Work Study 15 25 40 2 3 85 Table 5: Staff allocation

4. During the year to 30 June 2006, the stores received 15k requisitions from the assembling department, and 10k from the finishing department, respectively. The stores department did not provide a service for any other department. 5. The work study department carried out 2k chargeable hrs for the assembling department and 1k hrs for the finishing department, respectively. University of Wales 4 City Unity College

6. One special pump (internally referred to as MEA 6) was produced during the year to 30 June 2006. It took 10 M/C hrs of assembling time, and 15 direct labour hrs were worked on it in the finishing department. Its total direct costs (material and labour) amounted...