Month	DLH	Units	Overhead
1	1304	111	30800
2	1397	114	32900
3	1465	133	33800
4	1232	129	29900
5	1487	147	34200
6	1223	130	28700
7	1238	122	29600
8	1406	119	31600
9	1179	105	28000
10	1272	125	30300
11	1344	126	31600
12	1324	145	31800
13	1301	138	30500
14	1438	123	34000
15	1194	124	29000
16	1355	144	32600
17	1149	120	28200
18	1244	120	30000
19	1158	106	28800
20	1418	150	33100
21	1117	121	26700
22	1340	116	31200
23	1334	129	30900
24	1387	150	32700

(20 points ) The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the preceding 24 months is given below. Use regression to determine which measure, DLH or Units (or both), should be used for the budget. Your boss asks you to predict the overhead cost when 1518 DLH are used and 158 units are produced. Comment on how you would a respond to this prediction request from your boss. a. b. (20 points ) The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the preceding 24 months is given below. Use regression to determine which measure, DLH or Units (or both), should be used for the budget. Your boss asks you to predict the overhead cost when 1518 DLH are used and 158 units are produced. Comment on how you would a respond to this prediction request from your boss. a. b