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can someone help me with this mangerial accounting practice problem Maria Chavez owns a catering company that serves food and beverages at parties and business
can someone help me with this mangerial accounting practice problem
Maria Chavez owns a catering company that serves food and beverages at parties and business functions. Chavez's business is seasonal, with a heavy schedule during the summer months and holidays and a lighter schedule at other times. One of the major events Chavez's customers request is a cocktail party. She offers a standard cocktail party and has estimated the cost per guest as follows: $ 18.00 Food and beverages Labor (0.5 hour @ $10.00 /hr.) Overhead (0.5 hour $18.66/hr.) Total cost per guest 5.69 9.33 $32.33 The standard cocktail party lasts three hours and Chavez hires one worker for every six guests, so that works out to one half hour of labor per guest. These workers are hired only as needed and are paid only for the hours they actually work. When bidding on cocktail parties, Chavez adds a 11% markup to yield a price of about $32 per guest. She is confident about her estimates of the costs of food and beverages and labor but is not as comfortable with the estimate of overhead cost. The $18.66 overhead cost per labor hour was determined by dividing total overhead expenses for the last 12 months by total labor hours for the same period. Monthly data concerning overhead costs and labor hours follow: Overhead Month January February March April May June July August September October November December Laborr Houes 3,300 2,100 2,300 3.500 3,800 4,800 5,800 6,800 6,300 3.800 3,400 5.000 51.700 $ 53,000 57,000 58,000 62,000 65,000 69,000 72,000 75,000 73,000 66,00 62.000 Complete this question by entering your answers in the tabs below. Required 2A Required 2B Use the least-squares regression method to estimate the fixed and variable components of overhead expenses. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) Fixed cost per month Variable cost per hour Required Required 28 > Complete this question by entering your answers in the tabs below. Required 2A Required 2B Express these estimates in the form Y = a + bx. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) Step by Step Solution
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