Q.11). C6 69 Analyze cost behavior using a variety of methods (Learning Objectives 1, 2, 3, 4, & 5). Braunhaus Microbrewery is in the process of analyzing its manufacturing overhead costs. Braunhaus Microbrewery is not sure if the number of cases or the number of processing hours is the best cost driver of manufacturing overhead (MOH) costs. The following information is available : Month Manufacturing Overhead Costs Processing Hours cases MOH Cost per Processing Hour MOH Cost per Case January $29,500 680 8,000 $43.38 $3.69 February 27,800 575 6,750 48.35 4.
Q.11). C6 69 Analyze cost behavior using a variety of methods (Learning Objectives 1, 2, 3, 4, & 5). Braunhaus Microbrewery is in the process of analyzing its manufacturing overhead costs. Braunhaus Microbrewery is not sure if the number of cases or the number of processing hours is the best cost driver of manufacturing overhead (MOH) costs. The following information is available : Month?Manufacturing Overhead Costs?Processing Hours?cases?MOH Cost per Processing Hour?MOH Cost per Case??January?$29,500?680?8,000?$43.38?$3.69??February?27,800?575?6,750?48.35?4.12??March?24,500?500?5,500?49.00?4.45??April?29,000?600?7,250?48.33?4.00??May?28,000?650?7,800?43.08?3.59??June?29,570?710?5,600?41.90?5.31?? Requirements Are manufacturing overhead costs fixed, variable, or mixed? Explain. Graph Braunhaus Microbrewery’s manufacturing overhead costs against processing hours. Use Excel or graph by hand. Graph Braunhaus Microbrewery’s manufacturing overhead costs against cases produced. Use Excel or graph by hand. Does the data appear to be sound, or do you see any potential data problems? Explain. Use the high low method to determine Braunhaus Microbrewery’s manufacturing overhead cost equation using processing hours as the cost driver. Assume that management believes all of the data to be accurate and wants to include all of it in the analysis. Estimate manufacturing overhead costs if Braunhaus Microbrewery incurs 550 processing hours in July, using the results of the high low analysis in Requirement 5. Use Excel regression analysis to determine Braunhaus Microbrewery’s manufacturing over head cost equation using processing hours as the cost driver. Comment on the R square. Estimate manufacturing overhead costs if Braunhaus Microbrewery incurs 550 processing hours in July. Use Excel regression analysis to determine Braunhaus Microbrewery’s manufacturing over head cost equation using number of cases produced as the cost driver. Use all of the data provide. Project total…
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