Using Computer Spreadsheet Program

OBJECTIVE $5$

The controller for Beckham Company believes that the number of direct labour hours is

associated with overhead cost. He collected the following data on the number of direct labour

hours and associated factory overhead cost for the months of January through August.

Required:

Using a computer spreadsheet program such as Excel, run a regression on these data.

Print out your results.

Using your results from Requirement $1,$ write the cost formula for overhead cost.

$($You may round the fixed cost to the nearest dollar and the variable rate to the

nearest cent.$)$

What is $R^2$ based on your results? Do you think that the number of direct labour

hours is a good predictor of factory overhead cost?

Assuming that expected September direct labour hours are $1,450,$ what is expected

factory overhead cost using the cost formula in Requirement $2?$