Dana Rand owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Rand's business is seasonal, with a heavy schedule during the summer months and the year-end holidays and a light schedule at other times. During peak periods, there are extra costs; however, even during nonpeak periods Rand must work more to cover her expenses. One of the major events Rand's customers request is a cocktail party. She offers a standard cocktail party and has developed the following cost structure on a per-person basis. Food and beverages $13.00 Labor (0.5 hr. $11 per hour) Overhead (0.5 hr. $13 per hour) 5.50 6.50 $25.00 Total cost per person When bidding on cocktail parties, Rand adds a 15 percent markup to this cost structure as a profit margin. Rand is quite certain about her estimates of the prime costs but is not as comfortable with the overhead estimate. This estimate was based on the actual data for the past 12 months presented in the following table. These data indicate that overhead expenses vary with the direct-labor hours expended. The $13 estimate was determined by dividing total overhead expended for the 12 months ($778,000) by total labor hours (61,700) and rounding to the nearest dollar. Month January February March April May June Laber Bours 2,100 7,900 7,300 6,300 4,600 6,100 Overhead Expenses $62,000 69,000 83,000 8,000 51,000 67,000) 74,000 3,000 2,900 45,000 September 5,800 45,000 October 7,000 72,000 November 4,900 62,000 December 3,900 60,000 Total 61,700 $778,000 Rand recently attended a meeting of the local chamber of commerce and heard a business consultant discuss regression analysis and Its business applications. After the meeting. Rand decided to do a regression analysis of the overhead data she had collected. The following results were obtained. Intercept (a) Coefficient (b) Required: 48,000 2. Using data from the regression analysis, develop the following cost estimates per person for a cocktail party. Assume that the level of activity remains within the relevant range. 3. Dana Rand has been asked to prepare a bid for a 300-person cocktail party to be given next month. Determine the minimum bid price that Rand should be willing to submit 4. What other factors should Dana Rand consider in developing the bid price for the cocktail party? Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Using data from the regression analysis, develop the following cost estimates per person for a cocktail party. Assume that the level of activity remains within the relevant range. (Round Intermediate calculations and final answers to 2 decimal places.) Variable cost per person b. Absorption (full) cost per person Required Required 3> Dana Rand owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Rand's business is seasonal, with a heavy schedule during the summer months and the year-end holidays and a light schedule at other times. During peak periods, there are extra costs; however, even during nonpeak periods Rand must work more to cover her expenses. One of the major events Rand's customers request is a cocktail party. She offers a standard cocktail party and has developed the following cost structure on a per-person basis. Food and beverages. $13.00 Labor (0.5 hr. $11 per hour) Overhead (0.5 hr. $13 per hour) 5.50 6.50 Total cost per person $25.00 When bidding on cocktail parties, Rand adds a 15 percent markup to this cost structure as a profit margin. Rand is quite certain about her estimates of the prime costs but is not as comfortable with the overhead estimate. This estimate was based on the actual data for the past 12 months presented in the following table. These data indicate that overhead expenses vary with the direct-labor hours expended. The $13 estimate was determined by dividing total overhead expended for the 12 months ($778,000) by total labor hours (61,700) and rounding to the nearest dollar. Month January Overhead Expenses Labor Hours 2,100 $ 62,000 February 7,900 69,000 March 7,300 83,000 April 6,300 88,000 May 4.600 $1,000 June 6,100 67,000 July 3,000 74,000 August 2,900 45,000 September 5,800 45,000 October 7,000 72,000 November 4,900 62,000 December 3,000 60,000 Total 61,700 $778,000 Rand recently attended a meeting of the local chamber of commerce and heard a business consultant discuss regression analysis and its business applications. After the meeting, Rand decided to do a regression analysis of the overhead data she had collected. The following results were obtained. Intercept (a) Coefficient (b) 40,000 3 Required: 2. Using data from the regression analysis, develop the following cost estimates per person for a cocktail party. Assume that the level of activity remains within the relevant range. 3. Dana Rand has been asked to prepare a bid for a 300-person cocktail party to be given next month. Determine the minimum bid price that Rand should be willing to submit. 4. What other factors should Dana Rand consider in developing the bid price for the cocktail party