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Question 7 XYZ Company uses the formula y = a + bx to predict and analyze overhead costs. In the previous year, XYZ used $1,750 per month for the a factor and $0.35 for the b factor in applying overhead. XYZ has used direct labour hours in the past, but is wondering whether overhead behaviour is more closely associated with machine hours. The following data have been generated for consideration: Month Machine Hours Overhead Costs 1 471 $2,669 2 480 $3,025 3 398 $2,434 4 492 $2,897 5 503 $2,793 6 418 $2,791 Determine the fixed and variable values, using machine hours. (Round variable cost to 2 decimal places, e.g. 15.25 and fixed cost to O decimal places, e.g. 525). Fixed Cost $ Variable Cost per machine hour $ LINK TO TEXT If it is expected that the company will incur 850 machine hours the coming month, predict that month's overhead costs. (Round answer to o decimal places, e.g. 525). Month's overhead costs LINK TO TEXT Month's overhead costs s LINK TO TEXT For April of the coming year, XYZ expects 3,291 direct labour hours and 551 machine hours. Predict overhead costs using (1) direct labour hours. (Round answer to 0 decimal place, e.g. 1,525.) Overhead cost $ (2) machine hours. (Round answer to 0 decimal place, e.g. 1,525.) Overhead cost LINK TO TEXT If April's actual fixed overhead costs are $1,087 and actual variable overhead costs are $1,896, which activity base appears better? Better activity bas Machine hours Direct labour hours LINK TO TEXT