Please explain step by step.

TOPIC: Overhead Costs and Break-Even Analy As the management accountant for Superior Log Cabins, Inc. you have been asked to attend a planning meeting for the 2012 season. The owner specifically wants to know how many log cabins must be sold to earn a profit of $300,000 in 2012. The company makes three models of cabins: deluxe, standard, and basic. At the end of 2011, the local utility company began charging Superior as a mixed cost: an annual fee plus a variable cost for each kilowatt of power the company uses (rather than solely at a fixed rate). Each cabin (all three models) requires approximately 8,000 kilowatt hours of electricity. The company needs to add that new utility cost to the projected income statement for 2012. Cabins are constructed at three separate locations (one for each model), so the utility company will estimate costs separately for each model. The owner estimates that sales in 2012 will be 25 basic cabins, 35 deluxe cabins, and 55 standard cabins, and they will produce exactly that quantity. The current selling price per unit is $79,000 for basic, $112,000 for deluxe, and $91,000 for standard cabins and will not increase next year. Assume that there are $150,000 of fixed administrative expenses per model and $5,500 of variable selling expenses for each camper sold, no matter what model it is. The company uses job order costing. ADDITIONAL DATA: Table 1: 2011 Utility Usage and Costs (based on similar firms' experience) s Cost Kilowat Utility ts Cost 187976 135500 219764 170000 196644 160000 143987 114000 156983 128000 115300 89000 156392 108000 125982 98000 151999 88000 170637 140000 294000 165000 184763 144000 Table 2: Estimated Costs by Model for 2012 ble Compone Fixed Cost Unit Total nt Model Costs per DM Used Basic 38000 25 950000 DL Basic 28000 25 700000 Mfg OH Basic 18000 25 18000 DM Used Deluxe 52000 35 1820000 DL Deluxe 37000 35 1295000 Mfg OH Deluxe 18000 35 18000 DM Used Standard 43000 55 2365000 DL Standard 32000 55 1760000 Mfg OH Standard 18000 55 18000 4a. Use the SLOPE function (#25) and the INTERCEPT function (#26) to determine a cost equation for utilities. 4b. Using your cost equation and the total predicted number of kilowatt hours needed in 2012, estimate the utility costs for Basic model cabins. 4c. Use the FORECAST function (#27) and the total predicted number of kilowatt hours needed in 2012 to estimate the utility costs for Basic model cabins. TOPIC: Overhead Costs and Break-Even Analy As the management accountant for Superior Log Cabins, Inc. you have been asked to attend a planning meeting for the 2012 season. The owner specifically wants to know how many log cabins must be sold to earn a profit of $300,000 in 2012. The company makes three models of cabins: deluxe, standard, and basic. At the end of 2011, the local utility company began charging Superior as a mixed cost: an annual fee plus a variable cost for each kilowatt of power the company uses (rather than solely at a fixed rate). Each cabin (all three models) requires approximately 8,000 kilowatt hours of electricity. The company needs to add that new utility cost to the projected income statement for 2012. Cabins are constructed at three separate locations (one for each model), so the utility company will estimate costs separately for each model. The owner estimates that sales in 2012 will be 25 basic cabins, 35 deluxe cabins, and 55 standard cabins, and they will produce exactly that quantity. The current selling price per unit is $79,000 for basic, $112,000 for deluxe, and $91,000 for standard cabins and will not increase next year. Assume that there are $150,000 of fixed administrative expenses per model and $5,500 of variable selling expenses for each camper sold, no matter what model it is. The company uses job order costing. ADDITIONAL DATA: Table 1: 2011 Utility Usage and Costs (based on similar firms' experience) s Cost Kilowat Utility ts Cost 187976 135500 219764 170000 196644 160000 143987 114000 156983 128000 115300 89000 156392 108000 125982 98000 151999 88000 170637 140000 294000 165000 184763 144000 Table 2: Estimated Costs by Model for 2012 ble Compone Fixed Cost Unit Total nt Model Costs per DM Used Basic 38000 25 950000 DL Basic 28000 25 700000 Mfg OH Basic 18000 25 18000 DM Used Deluxe 52000 35 1820000 DL Deluxe 37000 35 1295000 Mfg OH Deluxe 18000 35 18000 DM Used Standard 43000 55 2365000 DL Standard 32000 55 1760000 Mfg OH Standard 18000 55 18000 4a. Use the SLOPE function (#25) and the INTERCEPT function (#26) to determine a cost equation for utilities. 4b. Using your cost equation and the total predicted number of kilowatt hours needed in 2012, estimate the utility costs for Basic model cabins. 4c. Use the FORECAST function (#27) and the total predicted number of kilowatt hours needed in 2012 to estimate the utility costs for Basic model cabins