COST ESTIMATION:REGRESSION ANALYSIS The following data has been provided by a catering company that prepares banquets and parties for both individuals and business functions through the year. The data indicates that overhead expenses vary with the direct labour hours expended. Month Labour hour's Overhead costs (sh.) January 25 5000 February 27 5900 March 30 6000 April 42 6400 May 45 6700 June 55 7100 July 65 7400 August 75 7700 September 70 7500 October 45 6800 November 31 6200 December 65 7300 Total 575 80,000 Required a) Using regression analysis, calculate the variable cost per labour hour and fixed overhead cost and hence determine the cost function and hence forecast total overhead cost at: 1)80 Labour hours ii)20 Labour hours (b) Compute the value of: (i) r and(ii) r squared. Explain the significance of the values giving their names