***Please answer all questions***

2. Hartman Company's Lucas plant manufactures thermostatic controls. Plant management has experienced fluctuating monthly overhead costs and wants to estimate overhead costs accurately to plan its operations and its financial needs. Interviews with plant personnel and studies reported in trade publications suggest that overhead in this industry tends to vary with labor-hours.

A member of the controller's staff proposed that the behavior pattern of these overhead costs be determined to improve cost estimation. Another staff member suggested that a good starting place for determining cost behavior patterns is to analyze historical data. Following this suggestion, monthly data were gathered on labor-hours and overhead costs for the past two years. No major changes in operations occurred over this period of time. The data are shown in the following table.

Month	Labor-Hours			Overhead Costs
1		251,670		$	2,741,820
2		238,570			2,375,530
3		193,200			2,400,450
4		271,600			2,590,890
5		324,100			3,072,120
6		291,070			2,618,470
7		271,600			2,480,540
8		251,690			2,745,860
9		232,050			2,821,650
10		343,750			3,438,010
11		186,070			2,378,640
12		232,020			2,550,980
13		382,940			3,604,020
14		376,600			3,405,090
15		291,060			3,016,800
16		396,070			3,638,640
17		356,690			3,554,200
18		323,890			3,191,920
19		389,515			3,482,020
20		317,320			3,219,820
21		343,580			3,495,730
22		337,010			3,207,560
23		382,950			3,600,930
24		376,390			3,636,950

Required:

a. Use the high-low estimation method to estimate the overhead cost behavior (fixed and variable portions components of cost) for the Lucas plant.

c. Using Excel, compute regression coefficients to describe the overhead cost equation.

d. Use the results of your regression analysis to develop an estimate of overhead costs assuming 420,000 labor-hours will be worked next month.

Dayton, Inc. manufactured 15,000 units of product last month and identified the following costs associated with the manufacturing activity. $ 1,072,000 1,948,000 248,000 213,000 Variable costs: Direct materials used Direct labor Indirect materials and supplies Power to run plant equipment Fixed costs: Supervisory salaries Plant utilities (other than power to run plant equipment) Depreciation on plant and equipment (straight-line, time basis) Property taxes on building 925,000 295,000 146,000 198,000 Required: Unit variable costs and total fixed costs are expected to remain unchanged next month. Calculate the unit cost and the total cost if 21,000 units are produced next month. (Round "Unit costs" to 2 decimal places.) Total variable costs Total fixed costs Total costs Unit costs