Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help solving this please, thank you! these bottom 2 are from the link given to us, just in case you need it. These

I need help solving this please, thank you!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribedthese bottom 2 are from the link given to us, just in case you need it.
image text in transcribed
image text in transcribed
These are the ones i worked on prior to the one im stuck on. Thats all i have
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
O Required information [The following information applies to the questions displayed 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 actual (not estimated) data with respect to its electrical costs. Direct Labor- Electrical Machine Hours Hours Costs Week 1 7.700 8,910 Week 2 $ 76,200 8.900 8,920 83,800 Week 3 8,600 8,870 81,000 Week 4 8,100 8,840 80,800 Week 5 7,600 8,990 79,400 Week 6 7.100 8,940 70,700 Week 7 5,500 8,870 61,500 Week 8 6,800 8,910 73,988 Total 60,38e 711256 $607300 Using the data above, the company translated these actual amounts into annual estimates as follows: Direct Labor- Electrical Machine Hours Hours Costs Total for eight weeks (a) 60,380 71,250 $ 607,300 52 weeks + 8 weeks (b) 6.5 6.5 6.5 Annual estinate (a) (b) 391,950 463,125 $3,947, 450 Click here to download the Excel template, which you will use to answer Requirements 4.5 and 6. Click here for a brief tutorial on Regression Analysis in Excel Click here to download the Excel template, which you will use to answer Regurements.4.5 and 6. Click here for a brief tutotalon Regression Analysis in Excel. S. 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 line in requirement Sa? c. What does the R tell us? Complete this question by entering your answers in the tabs below. Red SA Reg 58 Reg 5C 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 SA of the text for a brief ilustration of the method being used to perform the regression computations.) (Round the estimated variable cost per machine hour to two decimal places.) The estimated fred electrical cost per week is The estimated variable electrical cost per machine hour is Rese) Click here to download the Excel template, which you will use to answer Requirements 4.5 and 6. Click here for a brief tutorial on Regression Analysis in Excel S. 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 line in requirement Sa? c. What does the R2 tell us? Complete this question by entering your answers in the tabs below. Reg SA Red 50 Req 5C What is the R for the regression tine in requirement Sa? (Round your answer to four decimal places.) The Ris Reg SA Reqs > 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 line in requirement Sa? c. What does the R2 tell us? Complete this question by entering your answers in the tabs below. Reg SA Reg 5B Reg 5C What does the R tell us? It tells us the percentage of variation in the dependent variable (electrical cost) explained by variation in the Independent variable (machine-hours). it teils us the percentage of variation in the dependent variable (machine-hours) explained by variation in the Independent variable (electrical cost), it teils us the percentage of variation in the independent variable (electrical cost) explained by variation in the dependent variable (machine-hours). Olt tells us the percentage of variation in the independent variable (machine-hours) explaned by variation in the dependent variable (electrical cost) Required: 1. Using the annualized data, what is the estimated electrical cost per direct labor-hour? 2. Using the annualized data, what is the estimated electrical cost per machine-hour? Complete this question by entering your answers in the tabs below. Req 1 Rida 2 Using the annualized data, what is the estimated electrical cost per machine-hour? (Round your answer to two decimal places.) The estimated electrical cost per machine-hour is $ 10.07 Req1 Ren2 Total for eight weeks (a) 52 weeks + 8 weeks (b) Annual estimate (a) * (b) Machine-Hours 60,300 6.5 391,950 Direct Labor- Hours 71,250 6.5 463, 125 Electrical Costs $ 607,300 6.5 $3,947,450 Click here to download the Excel template, which you will use to answer Requirements 4.5 and 6. Click here for a brief tutorial on Regression Analysis in Excel 3. Assume that the company plans to bid on Job Q400 that would require 270 direct labor-hours and 350 machine-hours. a. How much electrical cost would be allocated to Job Q400 using the estimated electrical cost per direct labor-hour from requirement 1? b. How much electrical cost would be allocated to Job Q400 using the estimated electrical cost per machine-hour from requirement 2? 2,300 3-a. 3-b. The electrical cost allocated to Job Q400 is The electrical cost allocated to Job Q400 is $ $ 3,525 Total for eight weeks (a) 52 weeks + 8 weeks (b) Annual estimate (a) x (b) Machine-Hours 60,300 6.5 391,950 un annual estimates as follows: Direct Labor- Electrical Hours Costs 71,250 $ 607, 300 6.5 6.5 463, 125 $3,947,450 Click here to download the Excel template, which you will use to answer Requirements 4.5 and 6. Click here for a brief tutorial.on Regression Analysis in Excel 4. Refer to the eight weeks of actual data included in the Excel template. a. Use Excel to prepare a scattergraph plot with direct labor-hours on the horizontal axis and electrical costs on the vertical axis. b. Use Excel to prepare a scattergraph plot with machine-hours on the horizontal axis and electrical costs on the vertical axis. c. Which of the two allocation bases (direct labor-hours or machine-hours) appears to be the better choice for assigning electrical costs to jobs? 4-c. The better choice for allocating electrical cost is Machine Hours

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

More Books

Students also viewed these Accounting questions

Question

how is your product moved around?

Answered: 1 week ago

Question

2. Choose the people who will be your test readers.

Answered: 1 week ago