Excel Analytics 02-03 (Static) Job-Order Costing and Regression Analysis [LO2-1, L02-21 (The following information applies to the questions displeyed below Landis Company uses a job-order costing system with a predetermined plantwide overhead rate based on direct labor- hours. In an effort to improve its ability to measure job profitability and make decisions, the company is considering allocating some of its overhead costs, such as electrical costs, based on machine-hours instead of direct labor-hours. To further explore the potential benefits of this approach, the company has gathered the following eight weeks of achial (not estimated) data with respect to its electrical costs Machine-Bor - Co 7,700 8,910 8,900 Week 3 ,400 70 [1 1,400 1,991 7,100 78,700 5,500 8,87 43,500 Total $1,950 Using the data above, the company translated these actuel amounts into annual estimates as follows: Total for eight weeks (4) 32 weeks (b) Annual estimate (a) (b) C 60,300 6.5 4.5 4.5 391,950 Click here to downlood the Excel template which you will see anouirements 4,5 and 6. Click here for a brief tutorial on Regression Anthis in Exce Excel Analytics 02-03 (Static) Part 5 and 6 5. Refer to the eight weeks of actual data included in the Excel template a. Use least-squares regression to estimate the fixed electrical cost per week and the variable electrical cost per machine-hour (You can refer to Appendix 5A of the text for a brief illustration of the method being used to perform the regression computations) b. What is the R2 for the regression tine in requirement? c. What does the R2 tell us? Complete this question by entering your answers in the tabs Reg SA Use least-squares regression to estimate the fixed ectrical cost per week (You can refer to Appendix SA of the text for a brief ustration of the method b computations.) (Round the estimated variable ant per machine hour The estimated feed electrical cost per week is The estimated vanable electrical cost per mach variable electrical cast per machine-hour used to perform the regression 6. If the company continues to use direct labor-hours to allocate electrical costs to jobs, what impact w it have on the perceived profitability of Job 0400? Off will evercost Jo 400 thereby making appereis profe e based on machine-hours based on machine-hours bated on machine-houn O will undercost Job 400 ay mangappars profite Phan