Question: Required: Using regression analysis, choose the cost drivers that are significant predictors of overall overhead costs and can therefore be used to allocate overhead. Derive
Required: Using regression analysis, choose the cost drivers that are significant predictors of overall overhead costs and can therefore be used to allocate overhead. Derive the formula for allocating overhead. Compare total estimated overhead to total actual overhead using a scatterplot. Open Excel file Alt Lab 5.4 Data.xlsx. Master the Data Apply the same steps in Lab 5.4 to the Alt Lab 5.4 Data.xlsx dataset to perform cost driver analysis for the service call center at Thrustmaster, which sells game controllers, joysticks, steering wheels for PCs, and XBOX, Nintendo, and PlayStation consoles. Thrustmaster is trying to understand its overhead allocation for the call center that sup- ports its sales. It believes that by understanding the overhead costs and their respective cost drivers, it will be in a better position to allocate overhead to the various products that require more service. Thrustmaster is considering these four potential cost drivers: Customer Call Minutes Customer Complaints Average Workers Company Sales Customer Service MonthsThe number of the month for the overhead costsTotal Overhead CostThe total overhead cost for the service monthCustomer Call MinutesThe number of minutes spent on customer calls during the monthCustomer ComplaintsThe number of customer complaints filed during the monthAverage WorkersThe number of average workers during the monthCompany SalesThe gross dollar amount of company sales during the month Perform the Analysis Alternate Labs - On Your Own don't have step-by-step instruction or video support. Apply your experience from the original lab. If needed, reference the text or eBook for instructions and steps from the original lab. Answer the following questions based on the details provided. Question 1. For upcoming customer service months, which formula will the company use to apply overhead? 2. If the number of customer call minutes is 4,949 and the average workers is 14, what is the estimated overhead cost per month for Thrustmaster? Note: Round your coefficients and final answer to 2 decimal places. 3. In the full regression, what is the coefficient for average workers? Note: Round your answer to 2 decimal places. Enter a negative correlation as a negative number. 4. What is the adjusted R-Square value for the reduced regression? Note: Round your answer to 2 decimal places. 5. How many months are we using to estimate overhead costs for the service center?
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