Question: A.400 4,300 Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions

 A.400 4,300 Adriana Corporation manufactures football equipment. In planning for next

year, the managers want to understand the relation between activity and overhead

A.400 4,300 Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations: Month Labor-Hours Machine-Hours Overhead Costs 1 4,100 7,200 $ 516,000 2 4,000 7,600 521,000 3 3,900 8,200 551,500 4 4,200 7,700 543,500 5 8,400 583,500 6 8,300 574,500 7 4,200 Les 7,400 537,500 8 4,100 7,000 512,500 9 4,000 7,700 534,500 10 4,500 8,300 11 3,800 6,900 505,500 12 4,000 8,600 566,500 567,500 Required: Prepare a scattergraph based on the overhead and machine-hour data 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. To enter exact coordinates, click on the point and then click on the processing wheel symbol and then enter the exact coordinates in the dialog box that pops up. 4. Click OK. 1 Prepare a scattergraph based on the overhead and machine hour data. 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. To enter exact coordinates, click on the point and then click on the processing wheel symbol and then enter the exact coordinates in the dialog box that pops up. 4. Click OK. ok Methods of Estimating Costs-Scattergraph Adriana Corporation Month 1 ht ences 600000- Morena 500000 5800004 More 570000 580000 . Lo Overhead costs 5500004 540000 530000 520000 . 510000 A.400 4,300 Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations: Month Labor-Hours Machine-Hours Overhead Costs 1 4,100 7,200 $ 516,000 2 4,000 7,600 521,000 3 3,900 8,200 551,500 4 4,200 7,700 543,500 5 8,400 583,500 6 8,300 574,500 7 4,200 Les 7,400 537,500 8 4,100 7,000 512,500 9 4,000 7,700 534,500 10 4,500 8,300 11 3,800 6,900 505,500 12 4,000 8,600 566,500 567,500 Required: Prepare a scattergraph based on the overhead and machine-hour data 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. To enter exact coordinates, click on the point and then click on the processing wheel symbol and then enter the exact coordinates in the dialog box that pops up. 4. Click OK. 1 Prepare a scattergraph based on the overhead and machine hour data. 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. To enter exact coordinates, click on the point and then click on the processing wheel symbol and then enter the exact coordinates in the dialog box that pops up. 4. Click OK. ok Methods of Estimating Costs-Scattergraph Adriana Corporation Month 1 ht ences 600000- Morena 500000 5800004 More 570000 580000 . Lo Overhead costs 5500004 540000 530000 520000 . 510000

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