Earth and Artistry, Inc. provides commercial landscaping services. Sasha Cairns, the firm's owner, wants to develop cost estimates that she can use to prepare bids on jobs. After analyzing the firm's costs, Cairns has developed the following preliminary cost estimates for each 1,000 square feet of landscaping. Direct material Direct labor (5 direct-labor hours at $10 per hour) Overhead (at $17 per direct labor hour) Total cost per 1,000 square feet $400 50 85 $535 Cairns is quite certain about the estimates for direct material and direct labor. However, she is not as comfortable with the overhead estimate. The estimate for overhead is based on the overhead costs that were incurred during the past 12 months as presented in the following schedule. The estimate of $17 per direct-labor hour was determined by dividing the total overhead costs for the 12-month period ($646.000) by the total direct-labor hours (38,000). Regular Direct Total Direct- Overtime Direct- Labor Hours 200 January February March April May June July August Total Overhead $ 51,000 59,000 54,000 54,000 54,000 53,000 60,000 52,000 Labor Hours 3,040 2,640 2,820 2,760 2,720 2,650 3,480 2,430 30 70 210 500 730 670 350 Labor Hours 3,240 2,670 2,890 2,970 3,220 3,380 4,150 2,780 August September October November December Total 52,000 51,000 47,600 59,000 52,000 $646,000 2,430 2,710 3,240 3,500 2,890 34,880 350 40 30 40 250 3,120 2,780 2,750 3,270 3,540 3,140 38,000 'The overtime premium is 50 percent of the direct-labor wage rate. Calms believes that overhead is affected by total monthly direct-labor hours. Cairns decided to perform a least-squares regression of overhead (OH) on total direct-labor hours (OLH). The following regression formula was obtained. OH = $43 252 + $3.34 DLH Required: 2. Using the overhead formula that was derived from the least-squares regression, determine a total variable-cost estimate for each 3. Cairns has been asked to submit a bid on a landscaping project for the city government consisting of 58,000 square feet. Cairns estimates that 60 percent of the direct-labor hours required for the project will be on overtime. Calculate the incremental costs that should be included in any bid that Cairns would submit on this project. Use the overhead formula derived from the least-squares regression 5. Ater attending a seminar on activity based costing. Cairns decided to further analyze the company's activities and costs. She discovered that a more accurate portrayal of the firm's cost behavior could be achieved by dividing overhead into three separate pools, each with its own cost driver. Separate regression equations were estimated for each of the most results After attending a seminar on activity-based costing, Cairns decided to further analyze the company's activities and costs. She discovered that a more accurate portrayal of the firm's cost behavior could be achieved by dividing overhead into three separate pools, each with its own cost driver. Separate regression equations were estimated for each of the cost pools, with the following results. OH = $10,500 - $4.40 DLH, where DLH denotes direct labor hours OH - $9,500 + $13.10 SFS where SFS denotes the number of square feet of turf seeded (in thousands) OH, = $7700 - $5.90 PL. where PL, denotes the number of individual plantings (e.g., trees and shrubs) Assume that 5 direct-labor hours will be needed to landscape each 1,000 square feet, regardless of the specific planting material used. . Suppose the landscaping project for the city will involve seeding all 58,000 square feet of turf and planting 70 trees and shrubs. Calculate the incremental variable overhead cost that Cairns should include in the bid. b. Recompute the incremental variable overhead cost for the city's landscaping project assuming half of the 58,000-square-foot landscaping area will be seeded and there will be 260 individual plantings. The plantings will cover the entire 58,000-square-foot area Using the overhead formula that was derived from the least-squares regression, determine a total variable-cost estimate for each 1,000 square feet of landscaping. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total variable-cost Cairns has been asked to submit a bid on a landscaping project for the city government consisting of 58,000 square feet. Cairns estimates that 60 percent of the direct-labor hours required for the project will be on overtime. Calculate the Incremental costs that should be included in any bid that Cairns would submit on this project. Use the overhead formula derived from the least-squares regression. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Minimum bid Suppose the landscaping project for the city will involve seeding all 58,000 square feet of turf and planting 70 trees and shrubs. Calculate the incremental variable overhead cost that Cairns should include in the bid. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Total incremental variable overhead Recompute the incremental variable overhead cost for the city's landscaping project assuming half of the 58,000-square-foot landscaping area will be seeded and there will be 260 individual plantings. The plantings will cover the entire 58,000-square- foot area. (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Tournamental variatie overhead Earth and Artistry, Inc. provides commercial landscaping services. Sasha Cairns, the firm's owner, wants to develop cost estimates that she can use to prepare bids on jobs. After analyzing the firm's costs, Cairns has developed the following preliminary cost estimates for each 1,000 square feet of landscaping. Direct material Direct labor (5 direct-labor hours at $10 per hour) Overhead (at $17 per direct labor hour) Total cost per 1,000 square feet $400 50 85 $535 Cairns is quite certain about the estimates for direct material and direct labor. However, she is not as comfortable with the overhead estimate. The estimate for overhead is based on the overhead costs that were incurred during the past 12 months as presented in the following schedule. The estimate of $17 per direct-labor hour was determined by dividing the total overhead costs for the 12-month period ($646.000) by the total direct-labor hours (38,000). Regular Direct Total Direct- Overtime Direct- Labor Hours 200 January February March April May June July August Total Overhead $ 51,000 59,000 54,000 54,000 54,000 53,000 60,000 52,000 Labor Hours 3,040 2,640 2,820 2,760 2,720 2,650 3,480 2,430 30 70 210 500 730 670 350 Labor Hours 3,240 2,670 2,890 2,970 3,220 3,380 4,150 2,780 August September October November December Total 52,000 51,000 47,600 59,000 52,000 $646,000 2,430 2,710 3,240 3,500 2,890 34,880 350 40 30 40 250 3,120 2,780 2,750 3,270 3,540 3,140 38,000 'The overtime premium is 50 percent of the direct-labor wage rate. Calms believes that overhead is affected by total monthly direct-labor hours. Cairns decided to perform a least-squares regression of overhead (OH) on total direct-labor hours (OLH). The following regression formula was obtained. OH = $43 252 + $3.34 DLH Required: 2. Using the overhead formula that was derived from the least-squares regression, determine a total variable-cost estimate for each 3. Cairns has been asked to submit a bid on a landscaping project for the city government consisting of 58,000 square feet. Cairns estimates that 60 percent of the direct-labor hours required for the project will be on overtime. Calculate the incremental costs that should be included in any bid that Cairns would submit on this project. Use the overhead formula derived from the least-squares regression 5. Ater attending a seminar on activity based costing. Cairns decided to further analyze the company's activities and costs. She discovered that a more accurate portrayal of the firm's cost behavior could be achieved by dividing overhead into three separate pools, each with its own cost driver. Separate regression equations were estimated for each of the most results After attending a seminar on activity-based costing, Cairns decided to further analyze the company's activities and costs. She discovered that a more accurate portrayal of the firm's cost behavior could be achieved by dividing overhead into three separate pools, each with its own cost driver. Separate regression equations were estimated for each of the cost pools, with the following results. OH = $10,500 - $4.40 DLH, where DLH denotes direct labor hours OH - $9,500 + $13.10 SFS where SFS denotes the number of square feet of turf seeded (in thousands) OH, = $7700 - $5.90 PL. where PL, denotes the number of individual plantings (e.g., trees and shrubs) Assume that 5 direct-labor hours will be needed to landscape each 1,000 square feet, regardless of the specific planting material used. . Suppose the landscaping project for the city will involve seeding all 58,000 square feet of turf and planting 70 trees and shrubs. Calculate the incremental variable overhead cost that Cairns should include in the bid. b. Recompute the incremental variable overhead cost for the city's landscaping project assuming half of the 58,000-square-foot landscaping area will be seeded and there will be 260 individual plantings. The plantings will cover the entire 58,000-square-foot area Using the overhead formula that was derived from the least-squares regression, determine a total variable-cost estimate for each 1,000 square feet of landscaping. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total variable-cost Cairns has been asked to submit a bid on a landscaping project for the city government consisting of 58,000 square feet. Cairns estimates that 60 percent of the direct-labor hours required for the project will be on overtime. Calculate the Incremental costs that should be included in any bid that Cairns would submit on this project. Use the overhead formula derived from the least-squares regression. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Minimum bid Suppose the landscaping project for the city will involve seeding all 58,000 square feet of turf and planting 70 trees and shrubs. Calculate the incremental variable overhead cost that Cairns should include in the bid. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Total incremental variable overhead Recompute the incremental variable overhead cost for the city's landscaping project assuming half of the 58,000-square-foot landscaping area will be seeded and there will be 260 individual plantings. The plantings will cover the entire 58,000-square- foot area. (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Tournamental variatie overhead