I see you have answered this question before but this answer has to be in excel format in addition.

Required:

(Support your answers with appropriate computations using Excel)

1) What is the overhead rate estimated from the regression method? Explain the difference between the overhead rate originally estimated by Angela and the rate developed from the regression method.

2) Using the data from the regression analysis, develop the following estimates per person for a cocktail party.

a. Variable cost per person

b. Absorption cost per person

What are the pros and cons of using variable costing vs absorption costing for bidding decision?

3) If Angela decides to use absorption costing, how should she treat the fixed overhead? Discuss the pros and cons of using different capacity levels in allocating fixed overhead.

4) If Angela is going to prepare a bid for a 250-person cocktail party in July 2016, determine the minimum bid price that Angela should be willing to submit.

5) What other factors should Angela consider in developing the bid price for the cocktail party?

ACCTG 432 2016Sum Project 1 (50 points) Angela Yarbrough owns a catering company that prepares banquets and parties for business functions throughout the year. Angela's business is seasonal, with a heavy schedule during the summer months and the year-end holidays. During peak periods there are extra costs; however, even during nonpeak periods Angela must work more to cover her expenses. Typically, Angela prepares the food at the company's premises and then moves the food, equipment (such as ovens and hot boxes), supplies (such as linen & glass) to the event site. Angela employs 2 chefs and 4 line cooks with the following annual salary costs per employee: chef, $54,080 and line cooks, $37,440. She also hires waitpersons and aid/crew with the following hourly rates: waitpersons, $15 per hour and aid/crew, $12 per hour. The average payroll taxes and fringe benefits rate was 35% of the salaries/wages paid. Angela estimates her catering company having an monthly practical capacity of 5,200 direct labor hours, and a normal capacity of 4,000 direct labor hours. Angela has launched a marketing campaign, which is likely to increase monthly sales by 10% for the first six months of 2014. At the end of 2015, Angela has been asked to submit a bid for a cocktail party in May 2016. For the 30persons party, she budgets the following direct food costs and labor hours: Food and beverages $14.00 Chef 1 hours Line cook 4 hours Waitpersons 8 hours Crew 4 hours Angela is quite certain about her estimates of the prime costs but 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 in 2015 as presented in the following schedule. These data indicate that overhead expenses vary with the direct-labor hours expended. Angela is thinking to estimate her cocktail party overhead by dividing total overhead expended for the 12 months by total labor hours and rounding to the nearest dollar. When bidding on cocktail parties, Angela adds a 15 percent markup to this cost structure as a profit margin. Month Direct Labor Hours Overhead Expenses January 2,750 $51,200 February 2,520 $49,800 March 3,040 $53,800 April 3,790 $56,300 May 3,320 $54,600 June 4,660 $59,900 July 4,430 $59,000 August 4,780 $60,400 September 5,120 $62,700 October 3,910 $56,900 November 3,560 $55,600 December 5,120 $64,400 Required: (Support your answers with appropriate computations using Excel) 1) What is the overhead rate estimated from the regression method? Explain the difference between the overhead rate originally estimated by Angela and the rate developed from the regression method. 2) Using the data from the regression analysis, develop the following estimates per person for a cocktail party. a. Variable cost per person b. Absorption cost per person What are the pros and cons of using variable costing vs absorption costing for bidding decision? 3) If Angela decides to use absorption costing, how should she treat the fixed overhead? Discuss the pros and cons of using different capacity levels in allocating fixed overhead. 4) If Angela is going to prepare a bid for a 250-person cocktail party in July 2016, determine the minimum bid price that Angela should be willing to submit. 5) What other factors should Angela consider in developing the bid price for the cocktail party