Kelly Lombardi, the managerial accountant at Gord Inc., gathered the following information to predict the company's manufacturing overhead costs as a function o machine hours for next month (July 2021). Kelly is debating the use of the high-lov method versus regression analysis for cost prediction. Month Manufacturing overhead costs Number of machine hours March $2,900 3,600 April $2,690 3,950 May $2,350 3,300 June $2,390 3,450 Kelly performed regression analysis using the above data and obtained the following results: Intercept Coefficient = 31.45 X Variable 1 Coefficient = 0.90 R-square = 0.82 In the space provided below, answer the following questions: 1) Write the cost equation for predicting overhead costs using the regression output. (5 marks) 2) Using the derived cost equation in (1), compute manufacturing overhead costs if 4,000 MHs will be used in July? (5 marks) 3) Use the high-low method to find the cost equation for predicting overhead costs? Show all your computations (no credit will be awarded if computations are not shown). (12 marks) 4) Kelly is wondering if the number of direct labour hours might be a better predictor of manufacturing overhead costs than machine hours. What do you advise Kelly to do in order to determine which of the two bases predicts overhead costs better? (4