Least squares Regression Analysis The controller for TG Enterprises is trying to determine whether direct labor hours or machine hours is driving the company's overhead cost. He collected the following data or number of direct labor hours, the number of machine hours, and the associated factory overhead cost for the year 2018: Month Hours January 132 February 130 March 131 126 128 April May Machine Direct Labor Overhead Cost $5,750 $5,685 $5,790 $5,480 June July August 123 135 130 September 132 October 138 November 128 December 143 Hours 724 730 715 685 695 585 775 680 725 840 775 825 $5,590 $5,430 $5,790 $5,705 +($ $5,804 $5,976 $5,487 $6,108 Required a. Using Excel, run a regression on these data using machine hours as the independent variable. Provide the cost formula for overhead cost. Round fixed and variable costs to the nearest cent. Total cost = $ x machine hours)
Least squares Regression Analysis The controller for TG Enterprises is trying to determine whether direct labor hours or machine hours is driving the company's overhead cost. He collected the following data or number of direct labor hours, the number of machine hours, and the associated factory overhead cost for the year 2018: Month Hours January 132 February 130 March 131 126 128 April May Machine Direct Labor Overhead Cost $5,750 $5,685 $5,790 $5,480 June July August 123 135 130 September 132 October 138 November 128 December 143 Hours 724 730 715 685 695 585 775 680 725 840 775 825 $5,590 $5,430 $5,790 $5,705 +($ $5,804 $5,976 $5,487 $6,108 Required a. Using Excel, run a regression on these data using machine hours as the independent variable. Provide the cost formula for overhead cost. Round fixed and variable costs to the nearest cent. Total cost = $ x machine hours)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....
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