Question
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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