Saved Help Save & Exit 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 8 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 Electrical Costs $ 76,200 B3,800 81,000 80,800 79,400 70,700 61,500 73,900 $607, 300 Using the data above, the company translated these actual amounts into annual estimates as follows: Direct Labor- Hours 71,250 Total for oight weeks (a) 52 weeks - 8 weeks (b) Annual estimate (a) (b) Machine-lours 60,300 6.5 391,950 Electrical Conta $ 607,300 6.5 $3,947,450 6.5 463, 125 S of 4 Next Required information Complete this question by entering your answers in the tabs below. Req SA Reg 5B 4 Req SC Use least-squares regression to estimate the fixed electrical cost per week and the variable electrical cost per machine-hour. (You can refer to Appendix 5A of the text for a brief illustration of the method being used to perform the regression computations.) (Round the estimated variable cost per machine hour to two decimal places.) The estimated fixed electrical cost per week is The estimated variable electrical cost per machine-hour is Reg 58 > 6. If the company continues to use direct labor-hours to allocate electrical costs to jobs, what impact will it have on the perceived profitability of Job Q400? it will overcost Job 0400 thereby making it appear less profitable than it would be if the electrical costs were allocated based on machine hours It will overcost Job Q400 thereby making it appear more profitable than it would be if the electrical costs were allocated based on machine hours. Olt will undercost Job Q400 thereby making it appear more profitable than it would be if the electrical costs were allocated based on machine hours. It will undercost Job Q400 thereby making it appear less profitable than it would be if the electrical costs were allocated based on machine-hours. Saved Help Save & Exit 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 8 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 Electrical Costs $ 76,200 B3,800 81,000 80,800 79,400 70,700 61,500 73,900 $607, 300 Using the data above, the company translated these actual amounts into annual estimates as follows: Direct Labor- Hours 71,250 Total for oight weeks (a) 52 weeks - 8 weeks (b) Annual estimate (a) (b) Machine-lours 60,300 6.5 391,950 Electrical Conta $ 607,300 6.5 $3,947,450 6.5 463, 125 S of 4 Next Required information Complete this question by entering your answers in the tabs below. Req SA Reg 5B 4 Req SC Use least-squares regression to estimate the fixed electrical cost per week and the variable electrical cost per machine-hour. (You can refer to Appendix 5A of the text for a brief illustration of the method being used to perform the regression computations.) (Round the estimated variable cost per machine hour to two decimal places.) The estimated fixed electrical cost per week is The estimated variable electrical cost per machine-hour is Reg 58 > 6. If the company continues to use direct labor-hours to allocate electrical costs to jobs, what impact will it have on the perceived profitability of Job Q400? it will overcost Job 0400 thereby making it appear less profitable than it would be if the electrical costs were allocated based on machine hours It will overcost Job Q400 thereby making it appear more profitable than it would be if the electrical costs were allocated based on machine hours. Olt will undercost Job Q400 thereby making it appear more profitable than it would be if the electrical costs were allocated based on machine hours. It will undercost Job Q400 thereby making it appear less profitable than it would be if the electrical costs were allocated based on machine-hours