Lab Insight: Apply the same steps in Lab $3\mathrm{.}5$ to Lab $3\mathrm{.}5$ Alt Data.xlsx to perform cost driver analysis for the service call center at Thrustmaster. Thrustmaster is a fictitious company that sells game controllers, joysticks, steering wheels for PC$$s$,$ and XBOX, Nintendo, and PlayStation consoles.

Thrustmaster is trying to understand its overhead allocation for the call center that supports its sales. It believes that by understanding the overhead costs and their respective cost drivers, the company will be in a better position to allocate overhead to the various products that require more service. Management is considering these four potential cost drivers:

Customer call minutes

Customer complaints

Average workers

Company sales

Required:

Using regression analysis and choosing from several potential cost drivers, derive the cost drivers that are significant predictors of overall overhead costs and can be used to help allocate overhead. Set alpha to $5\%,$ or $0\mathrm{.}05.$

Derive the formula for allocating overhead $($the regression line equation$).$

Compare the estimated overhead per month to actual overhead per month using a scatterplot.

Data: Alt Lab $3\mathrm{.}5$ Data.xlsx

Specify the Question: How can we use regression analysis to find cost drivers and derive a formula for allocating overhead?

Obtain the Data: This lab uses the data in Alt Lab $3\mathrm{.}5$ Data.xlsx$.$ This dataset contains information for potential cost drivers.

Analyze the Data: Refer to lab $3\mathrm{.}5$ in your text for additional instructions and steps.

Lab $3\mathrm{.}5$ Alternate: Assessment Questions

Answer the following questions based on the details computed.