Least Squares Regression Analysis The controller for TG Enterprises is trying to determine whether direct labor hours or machine hours is driving the companys overhead cost. He collected the following data on the number of direct labor hours, the number of machine hours, and the associated factory overhead cost for the year 2018: Month Machine Hours Direct Labor Hours Overhead Cost January 198 1,810 $17,610 February 195 1,825 $17,410 March 197 1,788 $17,735 April 189 1,713 $16,780 May 192 1,738 $17,240 June 185 1,463 $16,635 July 203 1,938 $17,700 August 195 1,700 $17,500 September 198 1,813 $17,775 October 207 2,100 $18,400 November 192 1,938 $16,805 December 215 2,063 $18,895 Required a. Using Excel, run a regression on these data using machine hours as the independent variable. Provide the cost formula for overhead cost. Round fixed and variable costs to the nearest cent. Total cost = $ Answer + ($ Answer 77.93 x machine hours) b. Using Excel, run a regression on these data using direct labor hours as the independent variable. Provide the cost formula for overhead cost. Round the fixed and variable costs to the nearest cent. Total cost = $ Answer + ($ Answer 2.84 x direct labor hours) c. What is the R2 for the regression in requirement a ? What is the R2 for the regression in requirement b ? (Round answers to three decimal places.) a. Answer 0.931 b. Answer Which independent variable, direct labor hours or machine hours, is a better predictor of factory overhead cost? Answer Machine hours d. Assuming that expected January 2019 machine hours are 212, what is expected factory overhead cost using the cost formula in requirement a? (Note: Round to the nearest dollar.) $Answer 18696