Mickey Toys Company is attempting to determine the behavior of setup costs for its Minneapolis Plant. Two possible activity drivers have been mentioned: direct labor hours and number of batches produced. The plant controller has accumulated the following data. Required: 1. Prepare a Scattergraph by plotting Overhead costs (y axis) against Direct Labor Hours (x axis). (Hint: Use the Help function in Excel to figure out how to draw a Scatter graph. Make sure to label the axes and choose the scale such that the graph is nice. PRESENTATION carries points). a. Draw a line to represent the data (scatter graph); select any two points on the line drawn and determine the cost equation for Overhead costs. This is not the regression line b. Using a high-low method, compute the cost formula for Overhead with Direct Labor Hours as the activity. (Hint: You do not need the graph for this. Simply use the method discussed in the class. Also, there is no function is Excel that will do this. You can use the cell references to compute the rise and the run etc.). c. Estimate a regression equation with direct labor hours as the activity driver. If the Minneapolis plant forecasts 2,600 direct labor hours for November, what will be the estimated overhead cost? (Hint: Use the computational method shown in the book or Excel function to estimate regression equations. It's easier to use the SLOPE and INTERCEPT functions of Excel. Look at help on how to use these two functions. Excel gives you the slope and intercept, from which you can 2. Repeat parts a,b, and c with number of batches as the activity driver. If the Minneapolis plant forecasts 85 batches for November, what will be the estimated overhead cost? 3. Which of the two regression equations (from part 1 \& 2) does a better job of predicting overhead costs? Explain why. Submit the answers to all the parts in whatever way you deem fit. The final report should look nice. There is no single best way to present