b) The information below relates to Kenflix ltd which manufactures a single type of product. Overhead processing costs for the last 8 months have been as follows:

Month Machine hours Overhead cost

000 Sh 000

1 10.6 120

2 17 180

3 4 70

4 21 184

5 19 178

6 7.8 100

7 14 172

8 12 154

Required:

i) Equation of the form of y= a+bx using regression analysis method (8 marks)

ii) Estimate the overhead costs that would be incurred if 20, 000 machine hours are required to produce for the 9^th month.

(2 marks)