Walleye Company produces fishing reels. Management wants to estimate the cost of production equipment used to produce the reels.

The company reported the following monthly cost data related to production equipment.

Required

a. Use Excel to perform regression analysis. Provide a printout of the results.

b. Use the regression output to develop the cost equation Y = f + vx.

c. What would Walleye Company’s estimated costs be if it used 90,000 machine hours this month?

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Reporting Total Total Period Equipment Machine (Month) Costs Hours January $1,104,000 54,000 February 720,000 30,000 March 600,000 24,000 April 1,320,000 108,000 May 1,368,000 114,000 June 744,000 36,000 July 1,056,000 45,600 August 1,092,000 57,600 September 1,272,000 93,600 October 1,152,000 61,200 November 1,680,000 115,200 December 1,176,000 64,800