Determination of different cost drivers for overhead costs in a manufacturing firm is very important, as it helps in decision-making. For example, when the factors that are contributing most to the overhead costs are known, it becomes easy to control such costs. This report will involve analysis of different variables that are believed to affect overhead costs, including number of setups, machines hours and labour hours. Some of the methods of analysis that will be used include descriptive statistics, regression analysis, and use of histograms and graphs.
Section A – characteristics of all the variables
Calculating measures of location (averages) and dispersion (variation)
Direct Labour hours
No. of setups
Valid N (listwise)
Table 2: descriptive statistics (averages and variation)
Using all 24 months’ data to construct a frequency distribution and histogram for the machine hours
Table 2: Frequency Distribution Table
Figure 1: Histogram for the machine hours
Estimating the median and other descriptive statistics for the machine hours
Table 3: Median and Other Descriptive Statistics for machine hrs
A brief Report
Determination of descriptive statistics is very essential in decision-making regarding cost. Among the four variables, the highest level of dispersion was reported in machine hours, as shown by the standard deviation and variance, implying that use of machines is likely to significantly affect variations in overhead cost. Number of set ups have the least dispersion, possibly meaning that this variable may not significantly cause cost variation (Table 2). Table 2 shows the grouped frequency histogram for the machine hours, where it is evident that most of the hours lie between 1001 to 1100 and 1501 to1600. The shape of the histogram exhibits a bimodal distribution or rather it has two peaks. This is a problem that results from stratification and it means that the data could have originated from two different sources. It is, therefore, important to identify these sources and analyse the data separately if appropriate. Figure 3 shows the descriptive statistics for the machine hours. The minimum and the maximum values are very useful in quickly identifying the range between which hours fall, which in this case is 1060(min) and 1770(max). The standard error gives the extent to which the distribution is exposed to sample error, which in this case amounts to 43.5 (Mann, 1995).
For more on this paper, click here
To get a custom written paper in this or any other topic, click here
Expert consultations to help you with studies
We have competent advisors in majority of main subjects
We are available around the clock and all over the world
We promise to meet your expectations or your money back
Place your order now
Our Service Charter
Excellent Quality / 100% Plagiarism-FreeWe employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
Free RevisionsWe keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
Confidentiality / 100% No DisclosureWe make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
Money Back GuaranteeIf the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
24/7 Customer SupportWe have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.