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500 Conundrum Inc. Conundrum Inc, managers are trying to predict their overhead costs more accurately. In order to do that they have collected data on
500 Conundrum Inc. Conundrum Inc, managers are trying to predict their overhead costs more accurately. In order to do that they have collected data on several potential cost drivers. Use the data to find what you consider to be the best total cost function. Explain your choice. Include all data you used to make your decision. Direct Overhead Labor Machine Set Up Month Cost Hours Hours Hours $447,000 100 2,000 4 $600,000 450 3,000 9 $392,000 300 1,500 $448.000 700 1,600 $552,000 3,100 $860,000 900 3,200 $397,000 525 1,150 $493,000 800 1,500 $448,000 750 1,300 $530,0001 200 1,920 $380,000 400 830 $724,000 4,400 $553,000 1,000 2,500 $464,000 1,200 2,400 $520,000 1,175 2,800 $618,000 925 3,750 $780,000 1,150 4,690 $900,000 1,250 6,000 $664,000 980 4,060 $760,000 1,200 4,200 $560,000 1,000 2,750 $806,000 825 5,170 $705,000 800 3,580 $866,000 1,000 5,500 17 + = 600 23
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