3 A Manufacturing Company uses two different independent variables in two different 2 equations to evaluate the cost activities of the packaging department, machine-hours and number of packages. The most recent month's results of the two regressions are as follows: 4 Machine hours: 5 Variable 6 Constant 7 Predictor Variable 8 9 12-0.29 10 1 Number of packages: Variable Constant Predictor Variable Coefficient Standard Error -Value 652.32 209.75 3.11 44.3 24.61 1.68 Standard Coefficient 1-Value Error 65.08 75.04 2.2 4.3 2 2.15 19 There were twenty degrees of freedom. The critical value at the 95% level is 1.729. 20 Required: 21 a. What are the estimating equations for each cost driver? (2 marks) 22 23 24 25 26 27 b. Which cost driver is best and why? (2 marks) 28 29 30 31 32 33 34 35 36 End of Question 4 37 38