Data Set 1 provides enough data to do a simple regression model and/or measure the correlation between variables. Again, Alfred is concerned with the relationship between total conversion costs and direct labor hours, because of the investment in new technology. Currently, FTC allocates conversion costs using direct labor hours based on an average of the 48 observations. In other words, FTC finds the sum of the total conversion costs and direct labor hours over the 48 observations. Then FTC finds the predetermined conversion costs rate by dividing the total conversion costs by the total direct labor hours. Meanwhile, material costs are assigned directly to the tires. Direct labor costs are assigned as part of the conversion costs. Last month, FTC manufactured 25,000 FTC/A105 and 6,000 FTC/B107 tires. FTC/A105 is a more popular tire that is produced in larger batches than FTC/B107. Additionally, the average direct materials costs for FTC/A105 and FTC/B107 are $45 and $68, respectively. While the FTC/A105 fits on a common family car or van, the FTC/B107 is not suitable for the family vehicles because it is a larger tire. The direct labor hours used to produce FTC/A105 and FTC/B107 last month were: FTC/A105 - 9,000 direct labor hours FTC/B107 - 2,000 direct labor hours Case 1: Alfred Olson has provided you with the first data set. Also, he has informed you that FTC is currently assigning conversion costs to all tires based on the average conversion cost per direct labor hour for the 48 observations. James Jetter, the CEO of FTC, would like to know the total product costs and unit costs for FTC/A105 and FTC/B107. In addition to the total product costs and unit costs for FTC/A105 and FTC/B107, he would also like to know the strength of the relationship between direct labor hours and total conversion costs. Has this relationship improved or weakened since automation? Provide James Jetter with a short paper summarizing your findings. This short paper should 1) summarize the information and findings of your analysis, such as production cost per tire, 2) compare the results of your current correlation analysis with the correlation analysis prior to automation, and 3) discuss your suggestions on how to improve the overall calculation of total product and unit costs for the different tires. Observations DLH Total Costs 1 89,300 17,682,150 23 93,500 17,641,000 95,000 17,709,625 4 100,500 17,618,250 569 95,500 17,819,450 97,000 17,723,825 7 102,250 17,878,400 8 99,500 19,508,125 9 96,650 17,867,725 10 83,000 18,150,625 11 91,850 18,084,400 12 91,250 18,131,875 13 98,500 18,636,950 14 112,500 18,805,000 15 98,400 18,606,225 7 16 109,000 18,762,725 17 101,000 18,758,125 18 81,600 18,846,450 19 80,400 19,158,150 20 86,000 19,193,500 21 115,500 19,435,950 22 92,650 19,349,450 23 97,950 19,339,350 24 91,000 19,317,575 25 98,000 19,444,825 7 26 122,000 20,052,850 27 101,500 19,451,150 28 92,000 19,624,900 29 84,000 20,080,125 30 116,000 19,821,875 31 90,500 19,975,825 32 98,250 17,312,625 33 105,500 19,933,900 34 104,000 20,209,000 35 105,000 18,004,500 7 36 106,000 19,592,675 37 100,000 20,336,250 38 99,350 19,435,450 PAT FL A B C D E 18 81,600 18,846,450 19 80,400 19,158,150 20 86,000 19,193,500 21 115,500 19,435,950 22 92,650 19,349,450 23 97,950 19,339,350 24 91,000 19,317,575 25 98,000 19,444,825 26 122,000 20,052,850 27 101,500 19,451,150 28 92,000 19,624,900 29 84,000 20,080,125 30 116,000 19,821,875 31 90,500 19,975,825 32 98,250 17,312,625 33 105,500 19,933,900 34 104,000 20,209,000 35 105,000 18,004,500 36 106,000 19,592,675 37 100,000 20,336,250 38 99,350 19,435,450 39 104,400 18,965,400 40 94,000 17,654,675 41 100,750 17,972,675 42 102,150 20,587,500 43 80,000 16,792,000 44 87,000 16,801,875 45 96,500 17,012,875 46 88,500 17,039,175 47 119,000 19,513,000 48 96,000 17,458,350