How may a spreadsheet be used in capacity planning?

Define the feasibility in terms of operational, technical, financial, and scheduling aspects.

Ola Ltd, which uses a job costing system, had two jobs in process at the start of the year: Job L1 ($68,000) andJob L2 ($30,000). The following information is available:i) The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead andmachine activity for the year were anticipated to be $1,000,000 and 25,000 hours, respectively.ii) The company worked on three jobs during the first quarter (i.e. from 1 January to 31 March). Directmaterials used, direct labour incurred and machine hours consumed were as shown in the following table: Job numbers Direct material Direct labour Machine hoursL1 $15,000 $30,000 900L2 - 33,000 1,600L3 45,000 65,000 2,000HI5017 Managerial AccountingPage 2 of 22iii) Manufacturing overhead incurred during the first quarter was $215,000.iv) Ola Ltd completed Job L1 and Job L2 during the first quarter. Job L2 was sold on credit, producing a profitof $30,000 for the company.Required:a) Calculate the company’s predetermined overhead…

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