$3,528,972$3,617,144$3,797,905$3,812,284 $3,324,915$3,528,972$3,723,786$3,797,905 Labor-hours is more highly correlated with factory costs than machine-hours. Machine-hours is more highly correlated with factory costs than labor-hours. Labor-hours and machine-hours are equally correlated with factory costs. Neither labor-hours nor machine-hours are highly correlated with factory costs. Unllike a regression analysis, the high-low approach uses all observations and is therefore a preferable approach. Unlike the high-low approach, the regression analysis uses all observations and is therefore a preferable approach. The high-low approach and the regression analysis both use all observations. The high-low approach and the regression analysis both use only two observations. $3,559,752$3,627,089$3,723,786$3,751,923 \begin{tabular}{l|l|} \multicolumn{1}{|c|}{ Questions } \\ \hline 1.Whichofthefollowingstatementsregardingtheseanalysesisaccurate? \\ \hline 2.Whichofthefollowingconclusionscanbedrawnfromthesesimpleregressionanalyses? \\ \hline 3.Whataretheestimatedquarterlyfactorycostsbasedonthemultipleregressionanalysisusingbothlabor-hoursandmachine-hours? \\ \hline 4.Whataretheestimatedquarterlyfactorycosts,assuming21,000machine-hours? \\ \hline 5.Whataretheestimatedquarterlyfactorycosts,assuming16,000labor-hours? \\ \hline \end{tabular} Excel Analytics 5-43: Interpretation of Cost Estimation Results: Visualization [The following information applies to the questions displayed below.] Fiske Corporation manufactures a popular regional brand of kitchen utensils. The design and variety has been fairly constant over the last three years. The managers at Fiske are planning for some changes in the product line next year, but first they want to understand better the relation between activity and factory costs as experienced with the current products. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from from the last three years of operations: Results from a multiple regression of factory costs on labor-hours and machine-hours using the data of Fiske Corporation are as follows: Equation: Overhead =$1,401,352+($134.90 Labor-hours ) Statistical data Correlation coefficient 0.963 R2 0.928 Results from a regression of factory costs on machine-hours are as follows: Equation: Overhead =$1,770,363+($94.36 Machine-hours ) Statistical data Correlation coefficient 0.625 R2 . 391 Results from a multiple regression of factory costs on labor-hours and machine-hours are as follows: Equation: Overhead =$993,339+($33.79 Machine-hours )+($120.26 Labor-hours ) Statistical data Correlation coefficient 0.984 R2 0.967 Adjusted R2 0.960