Needed ASAP

Case 6-50 Interpreting Least-Squares Regression; Landscaping Service; Activity-Based Costing (LO 6-1, 62,65) Earth and Artistry, Inc, provides commercial landscaping services. Sasha Cairns, the firm's owner. wants to develop cost estimates that she can use to prepare bids on jobs. After analyzing the firm's costs, Caims has developed the following preliminary cost estimates for each 1,000 square feet of landscaping: Caims is quite certain about the estimates for direct material and direct labor. However. she is not as comfortable with the overhead estimate. The estimate for overhead is based on the overhead costs that were incurred during the past 12 months as presented in the following schedule. The estimate of \$16 per direct labor hour was determined by dividing the fotal overhead costs for the 12-month period ($628.000) by the total direct-labor hours (39.250). The overtime premium is 50 percent of the direct-labor wage rate. Cairns believes that overhead is affected by total monthly direct-labor hours. Caims decided to perform a least-squares regression of overhead (OH) on total direct-labor hours (DLH). The following regression formula was obtained. OH=$26.132+$8.01DLH Required: 2. Using the overhead formula that was derived from the least-squares regression, determine a total variable-cost estimate for each 1,000 square feet of landscaping. 3. Cairns has been asked to submit a bid on a landscaping ptoject for the city government conststing of 64,000 square feet. Calms estimates that 40 percent of the direct-labor hours required for the project will be on overtime. Calculate the incremental costs that should be included in any bid that Cairns would submit on thls project. Use the overhead formula derived from the least-squares regression 5. After attencing a seminar on activity-based costing, Caims decided to further analyze the company's activities and costs, She discovered that a more accurate portrayal of the firm's cost behavior could be achieved by dividing overhead into three separate pooks, each with its own cost driver. Separate regression equations were estimated for each of the cost pools, with the following results. OH1=$10,800+$3.70DUH where DLH denotes direct-labor hours results. OH1=$10.800+$3.70DLH where DL.H denotes direct-fabor hours: OH2$9.200+$13.90SFS, where SFS denotes the number of square feet of turf seeded (in thousands) OH3=$8,400+$5.80PL where PL denotes the number of individual plantings (e.g, trees and shrubs) Assume that 5 direct-labor hours will be needed to landscape each 1,000 square feet, regardiess of the specific planting material used o. Suppose the landscaping project for the city will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Calculate the incremental varible overhead cost that Cairns should include in the bid. b. Recompute the incremental varlable overhead cost for the city's landscaping project assuming half of the 64,000-square-foot landscaping area will be seeded and there will be 270 individual plantings, The plantings will cover the entire 64,000-5quare-foot area. Complete this question by entering your answers in the tabs below. Uidno the overhead formula that wax derived from the least-squares regression, determine a total varlable cost estinate for OH3=$8,400+$5.80HL Where PL denotes the number of individual plantings (e.g., trees and shrubs) Assume that 5 direct labor hours will be needed to landscape each 1,000 square feet, regardless of the specific planting material used. 0. Suppose the landscaping project for the city will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Calculate the incremental variable overhead cost that Caims should include in the bid b. Recompote the incrementat variable overhead cost for the cily's landscaping project assuming half of the 64,000-square-foot landscaping area will be seeded and there will be 270 individual plantings. The plantings will cover the entire 64,000 -square-foot area. Complete this question by entering your answers in the tabis below. Cains has been asked to submit a bid on a landscaping profect for the city government consisting of 64,000 square feet. Cairs estimates that 40 percent of the direct-labor hours required for the project will be on overtime. Calculate the incramental costs that should be included in any bid that Caims would submit on this profect. Use the overhead formula places.) where SFS denotes the number of square feet of turf seeded (in thousands) OH3=$8,400+$5,80PL where PL denotes the number of individual plantings (e.g, trees and shrubs) Assumbe that 5 direct-labor hours witl be needed to landscape each 1,000 square feet, regardless of the specific planting material used. o. Suppose the landscaping project for the clty will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Calculate the incremental varlable overhead cost that Calrns should include in the bid. b. Recompute the incremental variable overhead cost for the city's landscaping project assuming half of the 64,000-squate-foot landscaping area witl be seeded and there will be 270 individual plantings. The plantings will cover the entire 64,000 -square-foot area. Complete this question by enjering your answers in the tabs below. Suppose the landscaping project for the city will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Calculate the incremental variable overhead cost that Cairns should include in the bid. (Do not round intermediate caiculations and round your final answer to 2 decimal places.) Where SFS denotes the number of square feet of turf seeded (in thousands) OH3=$8,400+$5,80PL Whete PL denotes the number of indlvidual plantings (e.g, trees and shrubs) Assume that 5 direct-labor hours will be needed to landscape each 1000 square feet, regardless of the specific planting material used. o. Suppose the landscaping project for the city will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Caiculate the incremental variable overhead cost that Cains should include in the bid. b. Recompute the incremental variable overhead cost for the city's landscaping project assuming half of the 64,000-square-foot landscaping area will be seeded and there will be 270 indlvidual plantings. The plantings will cover the entire 64,000 -square-foot area. Complete this question by entering your answers in the tabs below. Recompute the incremental variable overhead cost for the city's landscaping project assuming hall of the 64,000 -square-foot landscaping area will be seeded and there will be 270 individual plantings. The plantings will cover the entire 64,0005quare foot area. (Do not round intermediate calculations and round vour final answer to s decimal niacee) Case 6-50 Interpreting Least-Squares Regression; Landscaping Service; Activity-Based Costing (LO 6-1, 62,65) Earth and Artistry, Inc, provides commercial landscaping services. Sasha Cairns, the firm's owner. wants to develop cost estimates that she can use to prepare bids on jobs. After analyzing the firm's costs, Caims has developed the following preliminary cost estimates for each 1,000 square feet of landscaping: Caims is quite certain about the estimates for direct material and direct labor. However. she is not as comfortable with the overhead estimate. The estimate for overhead is based on the overhead costs that were incurred during the past 12 months as presented in the following schedule. The estimate of \$16 per direct labor hour was determined by dividing the fotal overhead costs for the 12-month period ($628.000) by the total direct-labor hours (39.250). The overtime premium is 50 percent of the direct-labor wage rate. Cairns believes that overhead is affected by total monthly direct-labor hours. Caims decided to perform a least-squares regression of overhead (OH) on total direct-labor hours (DLH). The following regression formula was obtained. OH=$26.132+$8.01DLH Required: 2. Using the overhead formula that was derived from the least-squares regression, determine a total variable-cost estimate for each 1,000 square feet of landscaping. 3. Cairns has been asked to submit a bid on a landscaping ptoject for the city government conststing of 64,000 square feet. Calms estimates that 40 percent of the direct-labor hours required for the project will be on overtime. Calculate the incremental costs that should be included in any bid that Cairns would submit on thls project. Use the overhead formula derived from the least-squares regression 5. After attencing a seminar on activity-based costing, Caims decided to further analyze the company's activities and costs, She discovered that a more accurate portrayal of the firm's cost behavior could be achieved by dividing overhead into three separate pooks, each with its own cost driver. Separate regression equations were estimated for each of the cost pools, with the following results. OH1=$10,800+$3.70DUH where DLH denotes direct-labor hours results. OH1=$10.800+$3.70DLH where DL.H denotes direct-fabor hours: OH2$9.200+$13.90SFS, where SFS denotes the number of square feet of turf seeded (in thousands) OH3=$8,400+$5.80PL where PL denotes the number of individual plantings (e.g, trees and shrubs) Assume that 5 direct-labor hours will be needed to landscape each 1,000 square feet, regardiess of the specific planting material used o. Suppose the landscaping project for the city will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Calculate the incremental varible overhead cost that Cairns should include in the bid. b. Recompute the incremental varlable overhead cost for the city's landscaping project assuming half of the 64,000-square-foot landscaping area will be seeded and there will be 270 individual plantings, The plantings will cover the entire 64,000-5quare-foot area. Complete this question by entering your answers in the tabs below. Uidno the overhead formula that wax derived from the least-squares regression, determine a total varlable cost estinate for OH3=$8,400+$5.80HL Where PL denotes the number of individual plantings (e.g., trees and shrubs) Assume that 5 direct labor hours will be needed to landscape each 1,000 square feet, regardless of the specific planting material used. 0. Suppose the landscaping project for the city will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Calculate the incremental variable overhead cost that Caims should include in the bid b. Recompote the incrementat variable overhead cost for the cily's landscaping project assuming half of the 64,000-square-foot landscaping area will be seeded and there will be 270 individual plantings. The plantings will cover the entire 64,000 -square-foot area. Complete this question by entering your answers in the tabis below. Cains has been asked to submit a bid on a landscaping profect for the city government consisting of 64,000 square feet. Cairs estimates that 40 percent of the direct-labor hours required for the project will be on overtime. Calculate the incramental costs that should be included in any bid that Caims would submit on this profect. Use the overhead formula places.) where SFS denotes the number of square feet of turf seeded (in thousands) OH3=$8,400+$5,80PL where PL denotes the number of individual plantings (e.g, trees and shrubs) Assumbe that 5 direct-labor hours witl be needed to landscape each 1,000 square feet, regardless of the specific planting material used. o. Suppose the landscaping project for the clty will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Calculate the incremental varlable overhead cost that Calrns should include in the bid. b. Recompute the incremental variable overhead cost for the city's landscaping project assuming half of the 64,000-squate-foot landscaping area witl be seeded and there will be 270 individual plantings. The plantings will cover the entire 64,000 -square-foot area. Complete this question by enjering your answers in the tabs below. Suppose the landscaping project for the city will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Calculate the incremental variable overhead cost that Cairns should include in the bid. (Do not round intermediate caiculations and round your final answer to 2 decimal places.) Where SFS denotes the number of square feet of turf seeded (in thousands) OH3=$8,400+$5,80PL Whete PL denotes the number of indlvidual plantings (e.g, trees and shrubs) Assume that 5 direct-labor hours will be needed to landscape each 1000 square feet, regardless of the specific planting material used. o. Suppose the landscaping project for the city will involve seeding all 64,000 square feet of turf and planting 90 trees and shrubs. Caiculate the incremental variable overhead cost that Cains should include in the bid. b. Recompute the incremental variable overhead cost for the city's landscaping project assuming half of the 64,000-square-foot landscaping area will be seeded and there will be 270 indlvidual plantings. The plantings will cover the entire 64,000 -square-foot area. Complete this question by entering your answers in the tabs below. Recompute the incremental variable overhead cost for the city's landscaping project assuming hall of the 64,000 -square-foot landscaping area will be seeded and there will be 270 individual plantings. The plantings will cover the entire 64,0005quare foot area. (Do not round intermediate calculations and round vour final answer to s decimal niacee)