Continuation of P6-38B: regression analysis (Learning Objective 5)}

Refer to Braunhaus Microbrewery in P6-38B.

1. Use Excel regression analysis to determine Braunhaus Microbrewery's manufacturing overhead cost equation using processing hours as the cost driver. Comment on the R-square. Estimate manufacturing overhead costs if Braunhaus Microbrewery incurs 550 processing hours in July.

2. Use Excel regression analysis to determine Braunhaus Microbrewery's manufacturing overhead cost equation using number of cases produced as the cost driver. Use all of the data provided. Project total manufacturing overhead costs if Braunhaus Microbrewery produces 6,000 cases. Which cost equation is betterthis one or the one from Question 1? Why?
3. Use Excel regression analysis to determine Braunhaus Microbrewery's manufacturing overhead cost equation using number of cases produced as the cost driver. This time, remove any potential outliers before performing the regression. How does this affect the R-square? Project total manufacturing overhead costs if Braunhaus Microbrewery produces 6,000 cases.
4. In which cost equation do you have the most confidence? Why?