PLEASE HELP SOLVE, THANK YOU Flexible Budget The controller for Muir Company's Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting She decided to concentrate on the past 12 months since that time period was one in which there was little important change in technology, product lines, and so on Data on overhead costs, number of machine hours, number of setups, and number of purchase orders are in the following table Month Overhead Costs Machine Hours Number of Setups Number of Purchase Orders January $ 32,296 1,000 20 216 February 31,550 930 18 250 March 36,280 1,100 21 300 April 36,867 1,050 23 270 May 36,790 1,170 22 285 June 37,800 1,200 25 240 July 40,024 1,235 27 237 August 39,256 1,190 24 303 September 33,800 1,070 20 255 October 33,779 1,210 22 195 November 37,225 1,207 23 270 December 27,500 1,084 15 150 Totals $423,167 13,446 260 2,971 Required 1 Calculate an overhead rate based on machine hours using the total overhead cost and total machine hours (Round the overhead rate to the nearest cent and predicted overhead to the nearest dollar ) Use this rate to predict overhead for each of the 12 months Overhead rate $fill in the blank 080ac6ffd04c019 1 per machine hour Prepare a flexible budget for overhead for the 12 months If there is no variance, enter 0 for the amount and select NA in the last column Enter all amounts as postive values Muir Company Flexible Budget for Overhead Month Predicted Overhead Actual Overhead Variance January $ Select $ Select $ Select FavorableUnfavorableNA February Select Select Select FavorableUnfavorableNA March Select Select Select FavorableUnfavorableNA April Select Select Select FavorableUnfavorableNA May Select Select Select FavorableUnfavorableNA June Select Select Select FavorableUnfavorableNA July Select Select Select FavorableUnfavorableNA August Select Select Select FavorableUnfavorableNA September Select Select Select FavorableUnfavorableNA October Select Select Select FavorableUnfavorableNA November Select Select Select FavorableUnfavorableNA December Select Select Select FavorableUnfavorableNA Totals $ Select $ Select $ Select FavorableUnfavorableNA 2 Run a regression equation using only machine hours as the independent variable Prepare a flexible budget for overhead for the 12 months using the results of this regression equation (Round the intercept and x coefficient to the nearest cent and predicted overhead amount to the nearest dollar ) If there is no variance, enter 0 for the amount and select NA in the last column Enter all your answers as positive amounts Muir Company Flexible Budget for Overhead Month Predicted Overhead Actual Overhead Variance January $ Select $ Select $ Select FavorableUnfavorableNA February Select Select Select FavorableUnfavorableNA March Select Select Select FavorableUnfavorableNA April Select Select Select FavorableUnfavorableNA May Select Select Select FavorableUnfavorableNA June Select Select Select FavorableUnfavorableNA July Select Select Select FavorableUnfavorableNA August Select Select Select FavorableUnfavorableNA September Select Select Select FavorableUnfavorableNA October Select Select Select FavorableUnfavorableNA November Select Select Select FavorableUnfavorableNA December Select Select Select FavorableUnfavorableNA Totals $ Select $ Select $ Select FavorableUnfavorableNA Is this flexible budget better than the budget in Requirement 1 YesNo

The Answer is in the image, click to view ...

Question: PLEASE HELP SOLVE, THANK YOU. Flexible Budget The controller for Muir Company's Salem plant is analyzing overhead in order to determine appropriate drivers for use

PLEASE HELP SOLVE, THANK YOU.

Flexible Budget

The controller for Muir Company's Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting. She decided to concentrate on the past 12 months since that time period was one in which there was little important change in technology, product lines, and so on. Data on overhead costs, number of machine hours, number of setups, and number of purchase orders are in the following table.

Month	Overhead Costs	Machine Hours	Number of Setups	Number of Purchase Orders
January	$ 32,296	1,000	20	216
February	31,550	930	18	250
March	36,280	1,100	21	300
April	36,867	1,050	23	270
May	36,790	1,170	22	285
June	37,800	1,200	25	240
July	40,024	1,235	27	237
August	39,256	1,190	24	303
September	33,800	1,070	20	255
October	33,779	1,210	22	195
November	37,225	1,207	23	270
December	27,500	1,084	15	150
Totals	$423,167	13,446	260	2,971

Required:

1. Calculate an overhead rate based on machine hours using the total overhead cost and total machine hours. (Round the overhead rate to the nearest cent and predicted overhead to the nearest dollar.) Use this rate to predict overhead for each of the 12 months.

Overhead rate: $fill in the blank 080ac6ffd04c019_1 per machine hour

Prepare a flexible budget for overhead for the 12 months. If there is no variance, enter "0" for the amount and select "NA" in the last column. Enter all amounts as postive values.

Muir Company Flexible Budget for Overhead
Month	Predicted Overhead	Actual Overhead	Variance
January	$- Select -	$- Select -	$- Select -	FavorableUnfavorableNA
February	- Select -	- Select -	- Select -	FavorableUnfavorableNA
March	- Select -	- Select -	- Select -	FavorableUnfavorableNA
April	- Select -	- Select -	- Select -	FavorableUnfavorableNA
May	- Select -	- Select -	- Select -	FavorableUnfavorableNA
June	- Select -	- Select -	- Select -	FavorableUnfavorableNA
July	- Select -	- Select -	- Select -	FavorableUnfavorableNA
August	- Select -	- Select -	- Select -	FavorableUnfavorableNA
September	- Select -	- Select -	- Select -	FavorableUnfavorableNA
October	- Select -	- Select -	- Select -	FavorableUnfavorableNA
November	- Select -	- Select -	- Select -	FavorableUnfavorableNA
December	- Select -	- Select -	- Select -	FavorableUnfavorableNA
Totals	$- Select -	$- Select -	$- Select -	FavorableUnfavorableNA

2. Run a regression equation using only machine hours as the independent variable. Prepare a flexible budget for overhead for the 12 months using the results of this regression equation. (Round the intercept and x-coefficient to the nearest cent and predicted overhead amount to the nearest dollar.)

If there is no variance, enter "0" for the amount and select "NA" in the last column. Enter all your answers as positive amounts.

Muir Company Flexible Budget for Overhead
Month	Predicted Overhead	Actual Overhead	Variance
January	$- Select -	$- Select -	$- Select -	FavorableUnfavorableNA
February	- Select -	- Select -	- Select -	FavorableUnfavorableNA
March	- Select -	- Select -	- Select -	FavorableUnfavorableNA
April	- Select -	- Select -	- Select -	FavorableUnfavorableNA
May	- Select -	- Select -	- Select -	FavorableUnfavorableNA
June	- Select -	- Select -	- Select -	FavorableUnfavorableNA
July	- Select -	- Select -	- Select -	FavorableUnfavorableNA
August	- Select -	- Select -	- Select -	FavorableUnfavorableNA
September	- Select -	- Select -	- Select -	FavorableUnfavorableNA
October	- Select -	- Select -	- Select -	FavorableUnfavorableNA
November	- Select -	- Select -	- Select -	FavorableUnfavorableNA
December	- Select -	- Select -	- Select -	FavorableUnfavorableNA
Totals	$- Select -	$- Select -	$- Select -	FavorableUnfavorableNA

Is this flexible budget better than the budget in Requirement 1?

YesNo

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Flexible Budget, Multiple Regression The controller for Muir Company's Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting. She decided to...

Flexible Budget The controller for Muir Company's Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting. She decided to concentrate on the past 12...

You are told that Fund X experienced above-average performance over the past two years. Do you think it will continue over the next two years? Why or why not?

Record the following transactions in General Ledger accounts of the General Fund of Fergieville. 1. Incurred salaries of $300,000, $280,000 of which was paid. 2. A long-term note ($400,000 face...

Modify the spreadsheet using IF functions to include new columns, classifying the checking and savings account balances as low if the balance is less than $ 2 5 0 , medium if between $ 2 5 0 but less...

The CUBE structure contains the color and dimensions of a cube. Complete the function bubbleSortCubes that sorts an array of CUBE structure values according to increasing volumes using the bubble...