I see you have answered this question before but this answer has to be in excel format in addition.

Required:

1) What is the overhead rate estimated from the regression method? Explain the difference between the overhead rate originally estimated by Angela and the rate developed from the regression method.

2) Using the data from the regression analysis, develop the following estimates per person for a cocktail party.

a. Variable cost per person

b. Absorption cost per person

What are the pros and cons of using variable costing vs absorption costing for bidding decision?

3) If Angela decides to use absorption costing, how should she treat the fixed overhead? Discuss the pros and cons of using different capacity levels in allocating fixed overhead.

4) If Angela is going to prepare a bid for a 250-person cocktail party in July 2016, determine the minimum bid price that Angela should be willing to submit.

5) What other factors should Angela consider in developing the bid price for the cocktail party?

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