The following assumptions apply unless an alternative is specifically given in a question i) The Sales Price per unit ii) Direct materials and direct labor costs per unit. iii) Variable General and Administrative costs per unit. iv) Fixed General and Administrative costs per month. v) Marginal tax rate on Income A A A A 74.00 19.00 14.00 350.000 21% Data >> Chart Source Data This will bring up a pop up window. Select the X-value box and then pick a new range of cells. The scatter plot will update automatically. Since I set the plot up to include a trend line and the equation of the trend line you will also see the results of a simple linear regression of the form OH = intercept + slope X With this technique you can look at the pair-wise relationships between OH Costs and labor hours, Part 1. Answer these questions by applying the high-low method. Assume that the Overhead costs are estimated using labor hours. What is the estimated variable cost per labor hour? Q1 What is the estimated monthly fixed overhead cost? Q2 Forecast monthly overhead costs for a month when labor hours are equal to 1,100 Q3 What is the average number of labor hours per unit? Q4 What is your estimate of the variable overhead cost per unit? Q5 What is your estimate of the contribution margin per unit? Q6 What is your estimate of total fixed cost per month? Q7 What is your estimate of total fixed cost per year? Q8 How many units are required to break-even? Q9 How many units are required to earn an annual before tax profit equal to $ 750,000 Q10 Activate Windows Go to Settings to activate Windows. Data Table 1 Month January February March April May June July August September October November December Totals Labor Hours 1,262 962 1,318 1,280 942 1,188 1,114 1,006 1,344 1.196 760 792 13,164 Machine Hours 1,752 $ 1,362 $ 2,238 $ 2,205 $ 2,013 $ 2,205 $ 1,845 $ 1,773 $ 1,641 $ 1,971 $ 1,752 $ 2,229 $ 22,986 $ OH Costs 229,704 198,158 232,283 238,735 223,021 228,248 215,357 212,447 226,154 229,687 203,362 206,959 2,644,113 Units Mfg'd 5,256 4,086 6,714 6,615 5,652 6,615 5,535 5,319 4,923 5,913 4,560 4,752 65,940 Use the light blue cells above to show the results of running a linear regression Max Min 1. VC FC Use the blue area to show your high-low calculations Before you answer the required questions I suggest that you go to the Data worksheet. There I have a set of data that is related, but different to the data displayed in the Question worksheet. You will also see a X-Y scatter graph that includes a trend line. It is always a good idea to start your data analysis by looking at the raw data to check for outliers and also to see if there are any obvious trends. Use Data Table 1 to answer the following Questions The following assumptions apply unless an alternative is specifically given in a question The Sales Price per unit ii) Direct materials and direct labor costs per unit. You can change the X value of the displayed scatter graph by selecting the graph and then on the Menu Data >> Chart Source Data This will bring up a pop up window. Select the X-value box and then pick a new range of cells. The scatter plot will update automatically. Since I set the plot up to include a trend line and the equation $ $ 74.00 19.00
