Goulburn, Incorporated produces parts for heavy equipment used in mining and construction. The plant that produces one part common to many vehicles is highly automated, so all labor is considered part of factory overhead. The plant manager, who has just been promoted, would like to understand how overhead costs fluctuate in order to improve planning and budgets. After discussions with both financial and operations members of the plant staff, there is general agreement that the best cost driver for overhead is machine-hours. Monthly data were collected from the most recent two years on machine-hours and overhead. More months of data were available, but a process change had taken place about 30 months earlier, so the staff believed any data from before that time would be misleading. The data are shown in the following table: Month Machine-Hours Factory Overhead $527,100 416,500 1 39,300 2 37,300 30,100 365,800 42,400 498,200 50,600 590,700 45,500 503,400 42,400 476,900 62,100 702,400 36,300 425,300 53,700 661,000 11 $2,700 616, 700 12 36,300 490,500 13 59,900 693,000 24 58,900 654, 700 25 45, see 580,000 16 39.300 527,900 27 55,800 683,400 18 se, 600 613,700 19 60,900 669,500 ze 49,600 619,100 21 53,700 672,100 22 29,100 445,000 23 59,988 692,400 58,900 718, see Required: e. Use the high-low estimation method to estimate the overhead cost behavior (fixed and variable components of cost) for the Goulburn plant b. Prepare a scattergraph showing the overhead costs plotted against the machine-hours. c. Use a spreadsheet program to compute regression coefficients to describe the overhead cost equation. d. Use the results of your regression analysis to develop an estimate of overhead costs assuming 48,000 machine-hours will be worked next month. Complete this question by entering your answers in the tabs below. Required A Required C Required D Use the high-low estimation method to estimate the overhead cost behavior (fixed and variable components of cost) for the Goulburn plant. tite Round variable cost per unit to 2 decimal places. Overhead costs= per Machine hour x Machine-hours Required C> Required A Required C Required D Use a spreadsheet program to compute regression coefficients to describe the overhead cost equation. Note: Round "Cost per Machine Hour" to 2 decimal places. Round "Fixed Costs" to the nearest whole dollar amount. Coefficients Intercept (Fixed Costs) Cost per Machine Hour b. Prepare a scattergraph showing the overhead costs plotted against the machine-hours. Instructions: 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. Enter the exact coordinates In the dialog box that appears to the right of the graph. 4. Click save. 5. To change coordinates already saved, click on a point already placed in the graph, and enter revised coordinates In the dialog box that opens. Goulburn, Incorporated Factory Overhead (in dollars) 900000 800000 700000 600000 500000 400000 300000 200000 100000 5000 0000 0000 45000 A0000 5000 Machine-Hours 5000 Tools Month 16 Month 17 0000 Month 18 65000 es Required A Required C Required D Use the results of your regression analysis to develop an estimate of overhead costs assuming 48,000 machine-hours will be worked next month. Note: Round "Cost per Machine Hour" to 2 decimal places. Round your final answer to the nearest whole dollar amount. Overhead Cost Goulburn, Incorporated produces parts for heavy equipment used in mining and construction. The plant that produces one part common to many vehicles is highly automated, so all labor is considered part of factory overhead. The plant manager, who has just been promoted, would like to understand how overhead costs fluctuate in order to improve planning and budgets. After discussions with both financial and operations members of the plant staff, there is general agreement that the best cost driver for overhead is machine-hours. Monthly data were collected from the most recent two years on machine-hours and overhead. More months of data were available, but a process change had taken place about 30 months earlier, so the staff believed any data from before that time would be misleading. The data are shown in the following table: Factory Overhead $527,100 416,500 Month Machine-Hours 1 39,300 2 37,300 3 30,100 365,800 42,400 498,200 5 50,600 590,700 6 45,500 503,400 7 42,400 476,988 8 62,100 702,400 36,300 425,300 10 53,700 661,000 11 52,700 616,700 12 36,300 490,500 13 59,980 693,000 14 58,980 654,700 15 45,500 580,000 16 39,300 527,900 17 55,800 683,400 18 50,600 613,700 19 60,900 669,500 28 49,600 619,100 21 53,700 672,100 22 29,100 445,000 23 59,980 24 58,900 692,400 718,500 Required: a. Use the high-low estimation method to estimate the overhead cost behavior (fixed and variable components of cost) for the Goulburn plant. b. Prepare a scattergraph showing the overhead costs plotted against the machine-hours. c. Use a spreadsheet program to compute regression coefficients to describe the overhead cost equation. d. Use the results of your regression analysis to develop an estimate of overhead costs assuming 48.000 machine-hours will be worked next month... Complete this question by entering your answers in the tabs below. Required A Required C Required D Use the results of your regression analysis to develop an estimate of overhead costs assuming 48,000 machine-hours will be worked next month. Note: Round "Cost per Machine Hour" to 2 decimal places. Round your final answer to the nearest whole dollar amount, Overhead Cost Required C