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I'm supposed to solve this problem using excel but I'm not sure how to The manager of a local bakery and cafe is trying to
I'm supposed to solve this problem using excel but I'm not sure how to
The manager of a local bakery and cafe is trying to determine how the store's monthly costs vary with the number of customers served. The manager knows that direct materials and direct labor costs tend to be higher when the bakery has more customers but is not sure about the overhead, or indirect, costs of running the business. The following table shows the number of customers and total overhead cost for the past 12 months: Month Number of Customers (e) Total Overhead Cost) January 1.200 $10,500 February 1.150 8.225 March 11,551 11,750 12,225 10,000 8,835 August 10.555 September 14,000 October 1.850 November 12.000 December 10,995 October November 2.000 12.000 December 1,725 10.998 Required: 1. Give examples of overhead costs for a bakery cafe that would behave as a Variable cost. . Fixed cost. e Step cost. 4. Mixed cost. 2. Prepare a scattergraph to illustrate the relationship between total overhead cost (V) and number of customers (x). What does this scattergraph tell you about the relationship between total overhead and the number of customers served? 3. Use the high-low method to calculate the variable overhead cost per customer and total fixed overhead cost. Use the results to estimate total overhead for 1,500 customers. 4. Use least-squares regression to estimate the variable overhead cost per customer and total fixed overhead cost. Round the intercept (total fixed cost) and slope (variable cost per unit) estimates to two decimal places. Use the regression results to estimate the total amount of overhead for 1,500 customers. 5. Compare the estimate of variable overhead cost per unit and total fixed overhead costs between the high-low and regression methods. In the methods provide different estimates, explain why Step by Step Solution
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