The controller for Beckham Company believes that the number of direct labour hours is associated with overhead cost. He collected the following data on the number of direct labour hours and associated factory overhead cost for the months of January through August.

Required

1. Using a computer spreadsheet program such as Excel, run a regression on these data. Print out your results.2. Using your results from Requirement 1, write the cost formula for overhead cost. (You may round the fixed cost to the nearest dollar and the variable rate to the nearest cent.)3. What is R 2 based on your results? Do you think that the number of direct labour hours is a good predictor of factory overhead cost?4. Assuming that expected September direct labour hours are 1,450, what is expected factory overhead cost using the cost formula in Requirement 2?

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Overhead Cost ($) Month Number of Direct Labour Hours January February 1,378 1,400 1,440 1,380 1,360 1,180 1,500 1,350 55,500 55,900 56,500 55,700 55,700 54,100 57,200 56,080 March April May June July August