Consider the following two settings.
Setting 1: Westin, Inc., is estimating the cost of supervision at its many plants. The firm’s policy is to have one supervisor per 15 employees. Westin’s cost analyst mistakenly classified the supervision costs as a unit-level cost that varies in the number of employees.
Setting 2: Westin also employs one product engineer per product line. The cost analyst also incorrectly classified this product-level cost as a unit-level cost. He then divided the cost by the number of units Westin expects to produce to calculate a product engineering cost per unit.

Required:
a. Suppose Westin uses the analyst’s estimate of the cost of supervision per employee to estimate supervision cost. Would you expect the estimate to be higher, lower, or the same as the true cost?
b. Suppose Westin uses the analyst’s estimate of the product engineering cost to estimate the cost associated with the product engineer. Would you expect the estimate to be higher, lower, or the same as the true cost?