Required information Excel Analytics 02-02 (Static) Job-Order Costing; Plantwide Predetermined Overhead Rates (LO2-1, LO2- 2, LO2-3] (The following information applies to the questions displayed below.) Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor- hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs completed by the company during the year. Your goal is to complete the table shown below and comment on the insights that it provides: Job Applied Overhead ? 2 4 5 6 7 8 9 10 11 12 Sales $2,400 $5,400 $9,000 $1,450 $2,200 $7,000 $1,700 $1,600 $8,000 $4,100 $3,200 $2,800 Direct Materials ? ? 7 7 ? ? ? ? ? ? ? ? Direct Labor ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Total Job Cost ? ? 7 ? ? ? ? ? ? ? Gross Margin ? ? 7 7 ? ? ? 7 ? ? ? ? Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a brief tutorial on PivotTables in Excel. Click here for a brief tutorial on VLOOKUP in Excel. Excel Analytics 02-02 (Static) Part 8 Required: 8. Go to the tab titled "Combo Chart" and answer the following questions. a. According to the chart, which jobs have the lowest and highest labor intensity percentages? The job with the lowest labor intensity percentage is The job with the highest labor intensity percentage is b. According to the chart, which of the following statements are true regarding the company's existing cost system (you may select more than one correct answer)? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? The 12 jobs depicted in the combo chart suggest that gross margin and labor intensity percentage tend to have an inverse relationship. ? The 12 jobs depicted in the combo chart suggest that gross margin and labor intensity percentage tend to move in tandem because they are correlated with one another. 2 The existing cost system is most likely undercosting labor intensive products. 2 The existing cost system is most likely overcosting labor intensive products. Gross Margin vs. Labor Intensity $1,000.00 0.300 $800.00 $600.00 0.250 $400.00 LIITIK. 0.200 $200.00 $- Gross Margin 0.150 Labor Intensity 0.100 $(200.00) $(400.00) $(600.00) $(800.00) $(1,000.00) $(1,200.00) 0.050 0.000 4 1 12 5 7 11 10 8 2 6 9 3 Job Gross Margin Labor Intensity Note: Each job's labor intensity is computed by taking the job's direct labor cost divided by its sales