Olana Company is estimating costs for the last half of the year based on activity during the first half of the year. The results from January through June are as follows:

Required
A. Use linear regression analysis to determine the cost formula for Olana Company.
B. What is the estimated total cost of 6,000 units are produced?
C. What is the estimated total cost of 8,000 units are produced?

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Month January February March April May June Units Direct Materials Direct Labor Overhead 2,920 5,000 3,625 8,720 5,986 7,986 $11,680 20,000 14,500 34,880 23,944 31,944 $17,520 30,000 21,750 52,320 35,916 47,916 $27,550 31,810 33,640 41,760 36,000 42,840