Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 - Selection of an activity base Fantastic Sweepers of New England manufactures replacement rotary sweeper brooms for large sweeper trucks that clear leaves

image text in transcribed
image text in transcribed
Question 1 - Selection of an activity base Fantastic Sweepers of New England manufactures replacement rotary sweeper brooms for large sweeper trucks that clear leaves and snow from city streets. The business is highly seasonal with the largest demand during and just preceding the fall and winter months. Because there are so many different kinds of sweeper brooms used by its customers, Fantastic Sweepers makes all of its brooms to order. points The company has been analyzing its overhead accounts to determine the fixed and variable components for planning purposes. Below are data for the company's janitorial labor costs over the last nine months. Skipped Number of Units Produced 'Number of Janitorial Workdays eBook Print References January February March April May June July August September Janitorial Labor Cost $3,840 $3,648 $4,128 $3,456 $4,320 $4,032 $2,784 $2,688 $3,840 The number of workdays varies from month to month due to the number of weekdays and holidays, as well as vacation days and sick leave taken by the workers in the month. The number of units produced in a month varies depending on demand and the number of workdays in the month Help Save & Exit Submit August September $2.688 $3,840 127 The number of workdays varies from month to month due to the number of weekdays and holidays, as well as vacation days and sick leave taken by the workers in the month. The number of units produced in a month varies depending on demand and the number of workdays in the month points Skipped There are two janitors who each work an eight-hour shift each workday. They each can take up to ten days of paid sick leave every year. Their wages during their sick leave and paid vacation are charged to miscellaneous overhead rather than to the janitorial labor cost account eBook Required: Print References (a) Prepare a scatterplot using the Janitorial labor cost and number of units produced. b) Prepare a scatterplot using the Janitorial labor cost and number of janitorial workdays. (c) Which measure of activity-number of units produced or janitorial workdays-should be used as the activity base for explaining Janitorial labor cost? Briefly explain your reason for choosing the measure

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

Effective Writing A For Accountants

Authors: Claire B. May, Gordon S. May

11th Edition

0134667387, 9780134667386

More Books

Students also viewed these Accounting questions

Question

Discuss Machiavellis importance to the history of psychology.

Answered: 1 week ago