Problem 8 (Scattergraph Analysis; Selection of an Activity Base) Kapaskuhan Inc, manufactures lanterns and other native decorations. The business is seasonal, with the largest demand during the holiday season. Since there are so many different kinds of lanterns used by its customers, BG Sweepers makes all of its lanterms and decors to order. The company has been analyzing its overhead accounts to determine fixed and variable components for planning purposes. Below are data for the company's labor costs over the last nine months. Number of Number of Workdays 21 19 23 Units Produced Labor Cost P3,840 P3,648 P4,128 P3,456 October 115 109 102 76 69 108 77 71 November December January February March April May September 20 23 22 16 14 21 P4,320 P4,032 P2.784 P2,688 P3,840 127 The number of workdays varies from month to month due to the number of weekdays, holidays, days of vacation, and sick leave taken in the month. The number of units produced in a month varies depending on demand and the number of workdays in the month. There are two employees who each work an eight-hour shift each workday. They each can take up to 10 days of paid sick leave each year. Their wages on days they call in sick and their wages during paid vacations are charged to miscellaneous overhead rather than to the labor cost account. 1. Plot the labor cost and units produced on a scattergraph. (Place cost on the vertical axis and units produced on the horizontal axis.) 2. Plot the labor cost and number of workdays on a scattegraph. (Place cost on the vertical axis and the number of workdays on the horizontal axis.) . Which measure of activity - number of units produced or workdays - should be used as the activity base for explaining janitorial labor cost?
Problem 8 (Scattergraph Analysis; Selection of an Activity Base) Kapaskuhan Inc, manufactures lanterns and other native decorations. The business is seasonal, with the largest demand during the holiday season. Since there are so many different kinds of lanterns used by its customers, BG Sweepers makes all of its lanterms and decors to order. The company has been analyzing its overhead accounts to determine fixed and variable components for planning purposes. Below are data for the company's labor costs over the last nine months. Number of Number of Workdays 21 19 23 Units Produced Labor Cost P3,840 P3,648 P4,128 P3,456 October 115 109 102 76 69 108 77 71 November December January February March April May September 20 23 22 16 14 21 P4,320 P4,032 P2.784 P2,688 P3,840 127 The number of workdays varies from month to month due to the number of weekdays, holidays, days of vacation, and sick leave taken in the month. The number of units produced in a month varies depending on demand and the number of workdays in the month. There are two employees who each work an eight-hour shift each workday. They each can take up to 10 days of paid sick leave each year. Their wages on days they call in sick and their wages during paid vacations are charged to miscellaneous overhead rather than to the labor cost account. 1. Plot the labor cost and units produced on a scattergraph. (Place cost on the vertical axis and units produced on the horizontal axis.) 2. Plot the labor cost and number of workdays on a scattegraph. (Place cost on the vertical axis and the number of workdays on the horizontal axis.) . Which measure of activity - number of units produced or workdays - should be used as the activity base for explaining janitorial labor cost?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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Transcribed Image Text:Problem 8 (Scattergraph Analysis; Selection of an Activity Base)
Kapaskuhan Ine., manufactures lanterns and other native decorations. The
business is seasonal, with the largest demand during the holiday season.
Since there are so many different kinds of lanterns used by its customers, BG
Sweepers makes all of its lanterms and decors to order.
The company has been analyzing its overhead accounts to determine fixed
and variable components for planning purposes. Below are data for the
company's labor costs over the last nine months.
Number of
Units
Produced
115
109
102
Number of
Workdays
21
October
November
December
January
February
March
Labor Cost
P3,840
P3,648
P4,128
P3,456
P4.320
P4,032
P2,784
P2,688
P3,840
19
23
20
23
22
76
69
April
May
September
108
77
71
16
14
127
21
The number of workdays varies from month to month due to the number of
weekdays, holidays, days of vacation, and sick leave taken in the month. The
number of units produced in a month varies depending on demand and the
number of workdays in the month.
There are two employees who each work an eight-hour shift each workday.
They each can take up to 10 days of paid sick leave each year. Their wages
on days they call in sick and their wages during paid vacations are charged to
miscellaneous overhead rather than to the labor cost account.
1. Plot the labor cost and units produced on a scattergraph. (Place cost on
the vertical axis and units produced on the horizontal axis.)
2. Plot the labor cost and number of workdays on a scattegraph. (Place cost
on the vertical axis and the number of workdays on the horizontal axis.)
3. Which measure of activity - number of units produced or workdays
should be used as the activity base for explaining janitorial labor cost?
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