ABC Company wants to estimate its indirect manufacturing costs. It is considering using either one of two different cost drivers, units produced and machine hours. ABC gathered information for the last quarter, 13 weeks of data.

Use this data to

calculate the cost equation using the linear regression method with machine hours as the cost driver, and

estimate the indirect manufacturing costs if it expects to use 70 more machine hours than they did in Week 13.

The data follows. For the regression, calculate the values of a and b using the long method. You may do them by hand or paste from Excel, but do not use the Excel formulas directly.

Week	Units	Machine Hours	Indirect Manufacturing Costs
1	4,710	2,362	467,950
2	4,700	2,348	465,550
3	4,680	2,345	466,200
4	4,730	2,348	468,700
5	4,750	2,380	471,650
6	4,720	2,351	471,450
7	4,760	2,361	472,250
8	4,730	2,348	471,400
9	4,750	2,394	469,950
10	4,790	2,400	475,250
11	4,780	2,376	472,750
12	4,770	2,373	470,250
13	4,760	2,373	472,150