prepare a scattergraph
Case 2A-12 Requirements (these are different from the textbook) Prepare a rough scattergraph plot on note paper that puts labor-hours on the X-axis and overhead expenses on the Y-axis. This is for your review only. Do Not Include in Your Post. 1. What insights and trends are revealed by your scattergraph in this case? Be specific. CASE 2A-12 Analysis of Mixed Costs in a Pricing Decision LO2-11 Maria Chavez owns a catering company that serves food and beverages at parties and business functions. Charvet's business is seasonal, with a heavy schedule during the summer months and holidays and a liter schedule at other times One of the major events Chave's customers request is a cocktail party. She offers a standard cocktail party and has estimated the cost per muest as follows: Food and beverages Labor (0.5 hrs. 510.00/hr.) Overhead (0.5 hrs $13.98/hr.) Total cost per guest $25.99 The standard cocktail party last three hours and Chavez hires one worker for every guests, so that works out to one half hour of labor per guest. These workers are hired only as needed and are paid only for the hours they actually work When bidding on cocktail parties. Chavez adds a 15% mark up to yield a price of about 31 per quest. She is confident about her estimates of the costs of food and beverages and labor but is not as comfortable with the estimate of overhead cost. The $13.98 overhead cost per labor hour was determined by dividing total overhead expenses for the last 12 months by total labor hours for the same period. Monthly data concerning overhead costs and labor hours follow Labor lleurs Overhead Expenses $ 55.000 59 20 February March April 1000 The standard cocktail party last three hours and have his one worker for every sixets so that works out to one-half hour of labor perust. These workers are hired only as needed and are paid only for the hours they actually work Wheading cocktail parties, Chand a 15 mark up to yield a price of about SJ perust She is confident about her estimates of the costs of food and beverages and labor but is not as comfortable with the estimate of overhead cost. The $13.95 overhead cost per labor hour was determined by dividing total overhead expenses for the last 12 months by total labor hours for the same period. Monthly data concerning overhead costs and labor hours follow Tellers 3500 Orhad Expenses $ 55.000 59000 M 000 67000 5.500 6500 Juh 14 77000 75.000 7000 4. 100 Nimember SS Ch a se request to bid on a 150- fund e cocktail party to be CASE 2A-12 Analysis of Mixed Costs in a Pricing Decision BL02-11 Maria Chavez owns a catering company that serves food and beverages at parties and business functions. Chavez's business is seasonal, with a heavy schedule during the summer months and holidays and a lighter schedule at other times. One of the major events Chavez's customers request is a cocktail party. She offers a standard cocktail party and has estimated the cost per guest as follows: $15.00 5.00 Food and beverages Labor (0.5 hrs. @ $10.00/hr.) Overhead (0.5 hrs. @ $13.98/hr.) Total cost per guest 6.99 $26.99 The standard cocktail party lasts three hours and Chavez hires one worker for every six guests, so that works out to one-half hour of labor per guest. These workers are hired only as needed and are paid only for the hours they actually work. When bidding on cocktail parties, Chavez adds a 15% markup to yield a price of about $31 per guest. She is confident about her estimates of the costs of food and beverages and labor but is not as comfortable with the estimate of overhead cost. The $13.98 overhead cost per labor hour was determined by dividing total overhead expenses for the last 12 months by total labor hours for the same period. Monthly data concerning overhead costs and labor hours follow: Month January February March Anril Labor Hours 2.500 2.800 3.000 Overhead Expenses $ 55,000 59,000 60,000 64.000 20:02 The standard cocktail party lasts three hours and Chavez hires one worker for every six guests, so that works out to one-half hour of labor per guest. These workers are hired only as needed and are paid only for the hours they actually work When bidding on cocktail parties, Chavez adds a 15% markup to yield a price of about $31 per guest. She is confident about her estimates of the costs of food and beverages and labor but is not as comfortable with the estimate of overhead cost. The $13.98 overhead cost per labor hour was determined by dividing total overhead expenses for the last 12 months by total labor hours for the same period. Monthly data concerning overhead costs and labor hours follow: Weath January February March April May June July August September October November December Total Labor Hours 2.500 200 3.000 4.200 4.500 5.500 6.500 7.500 7.000 4.500 3.100 6.500 Overhead Expenses $ 55,000 59.000 60,000 64.000 67,000 71.000 74,000 77.000 75,000 68.000 62.000 73.000 $805,000 Chavez has received a request to bid on a 150 guest fundraising cocktail party to be given next month by an important local harity (Theart was th homshe would in this content Page 128
