MANAGERIAL ACCOUNTING HANDOUT PROBLEM 3 Score Name Section Problem (10 points) The Hodges Manufacturing Company manufactures a product called Mist. The company is preparing its budget for the upcoming year and wants to estimate the manufacturing overhead that will be used in the manufacture of Mist. Analysis shows that the cost is not strictly variable or fixed, but appears to have elements of both. You have been asked to derive a formula that can be used to estimate this cost. You have been given the following data from the current year showing the relationship between units of Mist produced and the amount of manufacturing overhead that was used for the month. You have learned in managerial accounting that there aretwo methods that are used to estimate these types of costs: the high-low method and regression analysis using spreadsheet software. You have decided to impress your boss by providing the output from both methods and permitting her to choose the formula that is best under the circumstances. You have entered the data into a spreadsheet program and performed a regression analysis on the data. The attached output was obtained from the program. REQUIRED: (1)Using the high-low method, provide the equation that should be used by the company to estimate the manufacturing overhead on a monthly basis for the upcoming year. Show all supporting computations Using the output from the regression analysis, provide the equation that should be used by the company to estimate manufacturing overhead on a monthly basis for the upcoming year using regression analysis. Using the results obtained in (1) above, what is the estimated cost of manufacturing overhead for a month where 2,700 units of Mist are produced? Show computations and round your answer to the nearest whole dollar Using the results obtained in (2) above, what is the estimated cost of manufacturing overhead for a month where 2,700 units of Mist are produced? Show computations and round your answer to the nearest whole dollar What advice would you give your boss concerning the use of the equations derived in (1) and (2) above for estimating manufacturing overhead for the upcoming year? (2) (3) (4)