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. 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Labor- Hours 251,690 238,590 193,300 271,650 324, 150 291,090 271,650 251, 710 232,075 343,800 186,090 232,040 382,960 376,650 291,080 396,090 356, 710 323,910 389,535 317, 340 343,600 337,030 382,970 376, 410 Overhead Costs $2,741,920 2,375,580 2,400,500 2,590,910 3,072, 170 2,618,520 2,480,590 2,745, 910 2,821,700 3,438,060 2,357,690 2,551,030 3,604,070 3,405, 140 3,016,850 3,638,690 3,554,250 3, 191,970 3,482,070 3,219,870 3,495,780 3,207,610 3,600,980 3,637,000 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 430,000 labor-hours will be worked next month. (Round Cost per Labor hour to 2 decimal places.) Overhead Cost