Required information Excel Analytics 02-03 (Static) Job-Order Costing and Regression Analysis (L02-4, 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 Machine Direct Electrical Hours Labor-Hours Costs 7,700 8,910 $ 76,200 8,900 8,920 8,600 8,870 ITI 8,840 7,600 8,990 8,940 8,870 6,800 8,910 71,250 Week 1 Week 2 Week 3 Week 4 8,100 Week 5 Week 6 7,100 Week 7 5,500 Week B Total 60,300 Total for eight weeks (a) 83,800 52 weeks+ 8 weeks (b) Annual estimate (a) w (b) 81,000 80,800 79,400 70,700 61,500 73,900 Using the data above, the company translated these actual amounts into annual estimates as follows: Machine- Direct Labor- Hours Hours Electrical Costs 60,300 71,250 $ 607,300 6.5 6.5 6.5 391,950 463,125 $3,947,450 5607,300 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 1 and 2 Required: 1. Using the annualized data, what is the estimated electrical cost per direct labor-hour? 2. Using the annualized data, what is the estimated electrical cost per machine-hour? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Using the annualized data, what is the estimated electrical cost per direct labor-hour?
Required information Excel Analytics 02-03 (Static) Job-Order Costing and Regression Analysis (L02-4, 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 Machine Direct Electrical Hours Labor-Hours Costs 7,700 8,910 $ 76,200 8,900 8,920 8,600 8,870 ITI 8,840 7,600 8,990 8,940 8,870 6,800 8,910 71,250 Week 1 Week 2 Week 3 Week 4 8,100 Week 5 Week 6 7,100 Week 7 5,500 Week B Total 60,300 Total for eight weeks (a) 83,800 52 weeks+ 8 weeks (b) Annual estimate (a) w (b) 81,000 80,800 79,400 70,700 61,500 73,900 Using the data above, the company translated these actual amounts into annual estimates as follows: Machine- Direct Labor- Hours Hours Electrical Costs 60,300 71,250 $ 607,300 6.5 6.5 6.5 391,950 463,125 $3,947,450 5607,300 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 1 and 2 Required: 1. Using the annualized data, what is the estimated electrical cost per direct labor-hour? 2. Using the annualized data, what is the estimated electrical cost per machine-hour? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Using the annualized data, what is the estimated electrical cost per direct labor-hour?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Required information
Excel Analytics 02-03 (Static) Job-Order Costing and Regression Analysis (L02-1, LO2-21
[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 B
Total
Machine-
Hours
7,700
8,900
8,600
8,100
7,600
7,100
5,500
6,800
60,300
Direct
Labor-Hours
8,910
8,920
8,870
8,840
8,990
8,940
8,870
8,910
71,250
Total for eight weeks
(a)
52 weeks+ 8 weeks (b)
Annual estimate (a) x
(b)
Electrical
Costs
$ 76,200
83,800
81,000
80,800
79,400
70,700
Using the data above, the company translated these actual amounts into annual estimates as follows:
Machine Direct Labor- Electrical
Hours
Costs
60,300
$ 607,300
6.5
6.5
391,950
61,500
73,900
$607,300
The estimated electrical cost per direct labor-
hour is
Hours
71,250
6.5
463,125
Click here to download the Excel templete, which you will use to answer Requirements 4. 5 and 6.
Click here for a brief tutorial on Regression Analysis in Excel,
$3,947,450
Excel Analytics 02-03 (Static) Part 1 and 2
Required:
1. Using the annualized data, what is the estimated electrical cost per direct labor-hour?
2. Using the annualized data, what is the estimated electrical cost per machine-hour?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2
Using the annualized data, what is the estimated electrical cost per direct labor-hour?
(Round your answer to two decimal places.)
Req 2 >
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