This data file, has provided the total conversion costs and direct labor hours for 48 daily observations. Data Set 1 provides enough data to Find:

1) regression model and/or measure the correlation between variables. Again, Alfred-CEO of FTC company , is concerned with the relationship between total conversion costs and direct labor hours, because of the investment in new technology. Currently, FTC allocates conversion costs using direct labor hours based on an average of the 48 observations.

In other words, FTC finds the sum of the total conversion costs and direct labor hours over the 48 observations. Then FTC finds the predetermined conversion costs rate by dividing the total conversion costs by the total direct labor hours. Meanwhile, material costs are assigned directly to the tires. Direct labor costs are assigned as part of the conversion costs. Last month, FTC manufactured 25,000 FTC/A105 and 6,000 FTC/B107 tires. FTC/A105 is a more popular tire that is produced in larger batches than FTC/B107. Additionally, the average direct materials costs for FTC/A105 and FTC/B107 are $45 and $68, respectively. While the FTC/A105 fits on a common family car or van, the FTC/B107 is not suitable for the family vehicles because it is a larger tire. The direct labor hours used to produce FTC/A105 and FTC/B107 last month were: FTC/A105 9,000 direct labor hours FTC/B107 2,000 direct labor hours

Case 1: Alfred Olson has provided you with the first data set. Also, he has informed you that FTC is currently assigning conversion costs to all tires based on the average conversion cost per direct labor hour for the 48 observations. James Jetter, the CEO of FTC, would like to know the total product costs and unit costs for FTC/A105 and FTC/B107. In addition to the total product costs and unit costs for FTC/A105 and FTC/B107, he would also like to know the strength of the relationship between direct labor hours and total conversion costs. Has this relationship improved or weakened since automation?

Find 1) production cost per tire, 2) compare the results of your current correlation analysis with the correlation analysis prior to automation, and 3) discuss your suggestions on how to improve the overall calculation of total product and unit costs for the different tires.

Observations	DLH	Total Conversion Costs
1	89,300	17,682,150
2	93,500	17,641,000
3	95,000	17,709,625
4	100,500	17,618,250
5	95,500	17,819,450
6	97,000	17,723,825
7	102,250	17,878,400
8	99,500	19,508,125
9	96,650	17,867,725
10	83,000	18,150,625
11	91,850	18,084,400
12	91,250	18,131,875
13	98,500	18,636,950
14	112,500	18,805,000
15	98,400	18,606,225
16	109,000	18,762,725
17	101,000	18,758,125
18	81,600	18,846,450
19	80,400	19,158,150
20	86,000	19,193,500
21	115,500	19,435,950
22	92,650	19,349,450
23	97,950	19,339,350
24	91,000	19,317,575
25	98,000	19,444,825
26	122,000	20,052,850
27	101,500	19,451,150
28	92,000	19,624,900
29	84,000	20,080,125
30	116,000	19,821,875
31	90,500	19,975,825
32	98,250	17,312,625
33	105,500	19,933,900
34	104,000	20,209,000
35	105,000	18,004,500
36	106,000	19,592,675
37	100,000	20,336,250
38	99,350	19,435,450
39	104,400	18,965,400
40	94,000	17,654,675
41	100,750	17,972,675
42	102,150	20,587,500
43	80,000	16,792,000
44	87,000	16,801,875
45	96,500	17,012,875
46	88,500	17,039,175
47	119,000	19,513,000
48	96,000	17,458,350