Balcom Enterprises is planning to introduce a new product that will sell for $120 a unit. Manufacturing cost estimates for 28,000 units for the first year of production are: Direct materials $1,372,000. Direct labor $630,000 (based on $18 per hour * 35,000 hours). Although overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent variable Independent variable Intercept Coefficient on independent variable Coefficient of correlation R2 Factory overhead costs Direct labor hours $136,000 $ 5.00 0.959 0.846 Based on this information, what is the total overhead cost for an estimated activity level of 45,000 direct labor-hours? Bachmann Products, Inc., has found that new products follow a learning curve. The first two units have been completed with the following results: Units Produced 1 Marginal Labor Time 115.00 92.00 2 How much time will be needed to complete the 8th unit? Multiple Choice