Additional Problems: Regression Analysis Problem 1: The production department plans its indirect costs for October (budgeted production is 500 t). The manager plans to derive the budget costs using actual costs from May to September. The following data are available: May June July August September Production 850 t 800 t 900 t 400 t 600 t Actual Cost 74,700 67,600 74,500 47,000 59,600 Required: Determine the underlying cost function and calculate budgeted cost for October using the least-square-method! Hint: The formulae for a and b in the regression line (y = a +bX) are: a = ()(?)- ()() n(2x2) - (X)(2X) b= n(EXY) - (EX)(CY) n(x2) - (2x)(2X)