Unit Direct Labor Hours per Tower Wages Per Direct Labor Hr Total Overhead Cost Per Tower

$16,000\mathrm{.}00$ $$14$ $$26,629\mathrm{.}65$

$25,232\mathrm{.}08$ $$14$ $$22,806\mathrm{.}82$

$34,711\mathrm{.}32$ $$14$ $$20,887\mathrm{.}61$

$43,939\mathrm{.}99$ $$19$ $$18,178\mathrm{.}48$

$53,909\mathrm{.}01$ $$19$ $$17,908\mathrm{.}59$

$64,296\mathrm{.}10$ $$19$ $$19,618\mathrm{.}94$

$73,651\mathrm{.}18$ $$22$ $$16,388\mathrm{.}62$

$83,786\mathrm{.}25$ $$22$ $$17,208\mathrm{.}22$

$93,634\mathrm{.}29$ $$24$ $$16,436\mathrm{.}65$

$103,284\mathrm{.}76$ $$24$ $$15,142\mathrm{.}23$

$113,010\mathrm{.}28$ $$30$ $$12,837\mathrm{.}47$

$123,363\mathrm{.}24$ $$30$ $$14,490\mathrm{.}86$

$133,296\mathrm{.}19$ $$30$ $$16,482\mathrm{.}02$

$142,973\mathrm{.}48$ $$36$ $$13,524\mathrm{.}85$

$153,399\mathrm{.}44$ $$36$ $$14,907\mathrm{.}50$

$163,028\mathrm{.}53$ $$36$ $$14,244\mathrm{.}31$

$172,944\mathrm{.}63$ $$36$ $$12,893\mathrm{.}18$

$183,169\mathrm{.}85$ $$41$ $$13,565\mathrm{.}87$

$193,071\mathrm{.}30$ $$41$ $$13,812\mathrm{.}00$

$202,964\mathrm{.}72$ $$41$ $$13,146\mathrm{.}82$

Connected Cell Tower Company $($CCTC$)$ is in the business of building cell towers. Its customers include Verizon, AT&T$,$ and other telecom companies. Considering the environmental impacts of cell towers, the company has developed a new model of cell towers. You are requested to plan and use analytics for determining costs for the coming year to assist CCTC in setting appropriate prices.

The data file CCTC Data shows the direct labor hours worked for each individual cell tower produced, the wages cost per direct labor hour, and the total overhead cost per tower.

Use appropriate analytical models to answer the following questions.

a$)$

Which is the better cost driver for total overhead costs per tower: direct labor cost per tower or direct labor hours per tower? Explain your choice and show statistical support for your decision.

b$)$

CCTV plans to build $5$ cell towers next year. Direct labor wages are predicted to be $$45$ per hour. Answer the following questions.

i$.$

How many direct labor hours will be required for each of these five cell towers $($units $21-25)?$ Explain and justify your methodology.

ii$.$

What will be the direct labor costs and overhead cost per tower for each of these five cell towers? Please explain and justify your methodology.