3. Q. Higgins, owner of Robin's Nest, wants to determine the cost behavior of labor and overhead. Higgins pays his workers a salary; during busy times, everyone works to get the orders out. Temps (temporary workers hired through an agency) may be hired to pack and prepare completed orders for shipment. During slower times, Higgins catches up on bookkeeping and administrative tasks while the salaried workers do preventive maintenance, clean the lines and building, etc. Temps are not hired during slow times. Higgins found that workers' salaries, temp agency payments, rentals, utilities, and plant and equipment depreciation are the largest dollar accounts. He believes that workers' salaries and plant and equipment depreciation are fixed, temp agency payments are associated with the number of orders (since temp workers are used to pack and prepare completed orders for shipment), and electricity is associated with the number of machine hours. When the number of different parts stored by Robin's Nest exceeds the space in the materials storeroom, Higgins rents nearby warehouse space. He can rent as much or as little space as he wants on a month-to-month basis. Therefore, he believes warehouse rental payments are variable with the number of parts purchased and stored. The account balances for the past six months as well as the six-month total are as follows: Information on number of machine hours, orders, and parts for the six-month period follows: 1. Calculate the monthly average account balance for each account. When required, round your answers to the nearest dollar and use your rounded answers in all subsequent computations. Calculate fixed monthly cost and the variable rates for temp agency payments, warehouse rent, and electricity. If required, round your nswers to the nearest cent and use the rounded answers in subsequent computations. Express the results in the form of an equation for total cost. Monthly cost =$ (orders) (parts) +3 (machine hours) 3. In July, Damell predicts there will be 400 orders, 240 parts, and 6,000 machine hours, What is the total labor and overhead cost for July? Round interim computations to 1 decimal place and round final answer to the nearest dollar. 4. What If Darnelt buys a new machine in July for $24,000 ? The machine is expected to last 10 years and will have no salvage value at the end of that time. What part of the cost equation will be affected? 4. What if Darnell buys a new machine in July for $24,000 ? The machine is expected to last 10 years and will have no salvage value at the end of that time. What part of the cost equation will be affected? How will this part of the cost equation be affected? What is the new expected cost in July? When required, round your answer to the nearest dollar. 5. Students are asked to form a prediction or estimation of various costs based on the cost function they created using the method. Thus, their resulting estimates of various costs represent an example of data analytics as they provide useful inputs regarding what will happen financially if the decisions involving the associated costs are implemented