Mary Ellis owns a small manufacturing company and would like to develop more accurate estimates for overhead expenses

when making planning decisions. She is pretty sure that overhead is a mixed cost that varies with direct labour$-$hours but she

would like to do a proper analysis to determine the variable and fixed components. She collected the following information for

the past $12$ months on direct labour$-$hours incurred and total overhead expenses.

$1.$ Using the least$-$squares regression method, estimate the variable overhead cost per direct labour$-$hour and the total fixed overhead cost per month. $($Round Fixed cost to the nearest whole dollar amount and the Variable cost per direct labour$-$hour to $2$ decimal places.$)$

$2.$ Express the cost data derived in part $1$ above in the form Y $=$ a $+$ bX$.($Round Fixed cost to the nearest whole dollar amount and the Variable cost to $2$ decimal places.$)$

$3.$ Using the cost formula stated in part $2,$ estimate total overhead costs for a month where direct labour$-$hours are expected to be $3,900.($Round your Variable cost per direct labor hour to $2$ decimal places and round your final answer to the nearest whole dollar amount.$)$