Sleepy Time, a large hotel chain, has been using Activity Based Costing to determine the cost of a nights stay at their hotels. One of the activities, Inspection, occurs to ensure the room is in good condition. Sleepy Time has been using number of rooms inspected as the cost driver for inspection costs. A significant component of inspection costs is the cost of replacing cutlery, crockery, and furnishings as a result of an inspection. The chief Inspection, Ichabod Neetson, is wondering whether inspection labor-hours might be a better cost driver for inspection costs. Neetson gathers information for weekly inspection costs, rooms inspected , and inspection labor-hours as follows: Week Rooms Inspected Inspection Labor Hours Inspection Costs 1 254 66 $1,740 2 322 110 $2,500 3 335 82 $2,250 4 431 123 $2,800 5 198 48 $1,400 6 239 62 $1,890 7 252 108 $1,720 8 325 127 $2,200 TASK ONE: 4 points Prepare a Scattergraph in Excel and use Lease Squares Regression to calculate the inspection cost function using each of the possible costs drivers a) Inspection Costs where x is the number of rooms inspected. b) Inspection Costs where x is the number of inspection labor hours. Remember to post function and R square. TASK TWO: 4 points Based on the information you calculated in Task One, which cost driver of inspection costs would you choose and WHY? TASK THREE: 6 points Neetson expects inspectors to inspect 300 rooms and work for 105 hours next week. Using the cost driver you chose in Task Two, what amount of inspection costs should Adams budget? Did you select the correct cost driver. Compare your answer to the one you would have calculated using the other cost driver.