RunRanRon would like to predict their total monthly overhead cost based on direct labor hours used. Data for the last 24 months is below.

1. Use this data to prepare a cost formula using a) the high-low method, b) a scattergraph, and c) regression analysis. Show the cost formula from each in the form:

Overhead = Fixed cost + DLH(Variable OH per unit)

1. Comment on which of these cost formulas will give the company the best prediction over time of their overhead costs.

MH	OH
322,873	1,928,536
264,136	1,634,346
399,379	2,428,650
212,529	1,320,273
293,634	1,744,972
341,676	2,096,533
277,806	1,667,561
358,636	2,198,653
328,058	2,010,753
268,178	1,619,550
211,044	1,274,433
275,893	1,703,696
209,935	1,284,142
397,917	2,404,651
329,816	1,976,677
386,677	2,332,793
276,436	1,617,130
343,755	2,050,914
252,577	1,469,103
389,276	2,385,576
309,744	1,816,372
202,073	1,166,323
265,704	1,583,614
230,152	1,385,987