a)UsingExcel, insert a scatterplot graph using machine hours as the independent variable. (1mark)Using only this information, explain whether or not machine hours looks like a potential cost driver.(2 marks)

b)Using Excel, insert a scatterplot graph usingnumber of batchesas the independent variable. (1mark)Using only this information, explain whether or notthe number of batcheslooks like a potential cost driver.(2 marks)

c)Using the regression function in Excel,identifythe fixed and variable components of overhead in 2020, using machine hours as the independent variable.

d)Usingthe regression function in Excel, determine the fixed and variable components of overhead in 2020, using number of batches as the independent variable.

e) Write out the cost function equation for the allocation base that should be used for preparing the next year's budget.Select one data point (live a little, pick a month other than January....) and use the actual volume to estimate the expected cost.Explain why this amount differs or does not differ from the actual amount spent that month.Clearly you are not able to investigate to find out the specific reason, so explain the concept.