Accounting

Use the follow ink information to answer the next two questions Sally has suggested the company try regression as a method to estimate the cost function. She uses the past data to obtain the following output from a simple regression analysis using two variables: Regression using labour hours Constant $ 250,000 R-squared 0.823 X Coefficient 63 T-Value of X Coefficient 43 Regression using machine hours Constant $ 22,730 R-squared 0.423 X Coefficient 7.9 T -Value of X Coefficient 33 What is the cost function? Standard error of Constant 180,000 Degrees of Freedom 4 Standard error of Coefficient 03 T-Value of Constant 0.85 Standard error of Constant 532 Degrees of Freedom 4 Standard error of Coefficient 03 T-Value of Constant 3.85 8. If the company used 10,000 machine hours and 7,000 labour hours, what is the estimated cost? 9. Marine Engineering Co. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. This year, the company worked 57,000 actual direct labor hours and incurred $345,000 of actual manufacturing overhead cost. However, the company had estimated that it would work 50,000 direct labor hours during the year. If the company under-applied overhead by $3,000, what was the estimated or budgeted overhead