Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Excel Analytics 02-03 (Static) Job-Order Costing and Regression Analysis (LO2-1, LO2-2) [The following information applies to the questions displayed below] Landis Company uses

image text in transcribed
image text in transcribed
Required information Excel Analytics 02-03 (Static) Job-Order Costing and Regression Analysis (LO2-1, LO2-2) [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: Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week Total Machine-Hours 7.700 8.900 8,600 8.100 7.600 7.100 5,500 6,800 60,300 Direct Labor- Hours 3,910 8.920 3,870 8.840 8.990 8,940 3,870 8,910 71,250 Electrical Costs $ 76,200 83,800 81,000 80, 800 79,400 70,700 61,500 73.900 5 607 300 Using the data above, the company translated these actual amounts into annual estimates as follows: Direct Labor- Hours 71.250 6.5 463.125 Machine Hours 60.300 6.5 391.950 Electrical Conte 607.00 6.5 53, 947.450 Total for eight weeks (a) 52 weeks - Weeks (b) Annual estimate (a) (b) CD 2 3 4 of 4 ! Next > Prey Using the data above, the company translated these actual amounts into annual estimates as follows: 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. Excel Analytics 02-03 (Static) Part 3 3. Assume that the company plans to bid on Job 0400 that would require 270 diqect labor hours and 350 machine-hours a. How much electrical cost would be allocated to Job 0400 using the estimated electrical cost per direct labor-hour from requirement 12 b. How much electrical cost would be allocated to Job 2400 using the estimated electrical cost per machine-hour from requirement 2? 3-a. The electrical cost allocated to job 0400 is The electrical cost allocated to Job Q400 is 3-b

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

Step: 3

blur-text-image

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

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

20th Edition

1292399805, 978-1292399805

More Books

Students also viewed these Accounting questions

Question

What is the message repetition?

Answered: 1 week ago

Question

What is the budget for this project?

Answered: 1 week ago