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Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the

Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations:

Month Labor-Hours Machine-Hours Overhead Costs
1 4,200 7,300 $ 516,500
2 4,100 7,700 521,500
3 4,000 8,300 552,000
4 4,300 7,800 544,000
5 4,500 8,500 584,000
6 4,400 8,400 575,000
7 4,300 7,500 538,000
8 4,200 7,100 513,000
9 4,100 7,800 535,000
10 4,600 8,400 568,000
11 3,900 7,000 506,000
12 4,100 8,700 567,000

Required:

Prepare a scattergraph based on the overhead and machine-hour data.

1. On the graph below, use the point tool to plot the point corresponding to machine-hours and overhead costs (Month 1).

2. Repeat the same process for the plotter tools (Month 2, Month 3,....).

3. To enter exact coordinates, double click on the point and enter the exact co-ordinates of x and y.

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