Chapters 5.6A Homework Saved Help Save & Exit Submit Check my work Hartman Company's Lucas plant manufactures thermostatic controls. Plant management has experienced fluctuating monthly overhead costs and wants to estimate overhead costs accurately to plan its operations and its financial needs. Interviews with plant personnel and studies reported in trade publications suggest that overhead in this industry tends to vary with labor-hours. 2 A member of the controller's staff proposed that the behavior pattern of these overhead costs be determined to improve cost estimation. Another staff member suggested that a good starting place for determining cost behavior patterns is to analyze historical data. Following this suggestion, monthly data were gathered on labor-hours and overhead costs for the past two years. No major changes in operations occurred over this period of time. The data are shown in the following table: Month Labor-Hours Overhead Costs Book 251, 630 $2, 741, 620 238, 530 2,375, 430 193, 808 2,408, 350 2,590, 850 Print 324, 800 3, 072, 020 2, 618, 370 271, 508 2,480, 440 251, 658 References 232, 808 2,821, 550 10 343, 650 3,437,910 186, 030 2,210, 540 12 231, 980 13 2,550, 880 14 376, 50 15 3,404,990 291, 020 3, 016, 790 16 17 396, 030 3, 638, 540 18 356, 650 3,554, 180 19 3, 191, 820 389, 475 20 3,481, 920 317, 280 343 , 548 3,219, 720 21 3.495, 630 336, 970 3,207 , 460 382, 910 3, 608, 830 376, 350 3,636, 850 Required: a. Use the high-low estimation method to estimate the overhead cost behavior (fixed and variable portions components of cost) for the Lucas plant. (Round variable cost per unit to 2 decimal places.) Overhead Costs = per LH * Labor hours c. Using Excel, compute regression coefficients to describe the overhead cost equation. (Round your answers to 2 decimal places.) Coefficients Intercept (Fixed costs) Cost per Labor Hour d. Use the results of your regression analysis to develop an estimate of overhead costs assuming 400,000 labor-hours will be worked next month. (Round Cost per Labor hour to 2 decimal places.) Overhead Cost Ti