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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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1 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 >
Transcribed Image Text:1 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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