This file shows the direct labor hours worked for each individual ship produced, the wage per direct labor hour at the time of production, and the total direct labor cost and direct labor-related overhead for each unit.(These data come from a period of labor scarcity, in which wages increased rapidly.)

2. Which of the following is the better model for predicting the direct labor hours required to build ships in the future? Explain briey (at least 2 reasons) and show scatterplot and regression outputs. (a) A regression of direct labor hours (y= column B) on number of units (x= column A). (b) A regression of the natural log of direct labor hours [y= ln(colurnn B)] on the natural log of unit numbers [x=ln(column A)]. The answer to question 2 should provide you with a leaming-curve function that will allow you to predict the labor hours required to build the next ships. 3. Suppose Bond Voyage plans to build 5 ships next year (ships #21 through 25), and direct labor wages are now holding steady at $34 an hour. Answer questions (a) and (b) below, and provide the spreadsheet that you used to calculate these answers. (a) How many direct labor hours will be required for each of these ve ships? (b) What will the total direct labor costs be for these five ships? (c) Using the model of overhead costs that you chose in question 1, what will overhead costs be for these ve ships? A B C D E O L OO V O UT A W N H Unit DLHs per unit Wages/hr Labor cost Labor-related MOH 1 5000 $12 60,000 $22,191 2 4360 $12 52,321 $19,006 3 3926 $12 47,113 $17,406 3283 $16 52,533 $15,149 3258 $16 52,120 $14,924 3580 $16 57,281 $16,349 3043 $18 54,768 $13,657 8 3155 $18 56,794 $14,340 9 3029 $20 60,572 $13,697 11 10 2737 $20 54,746 $12,619 12 11 2509 $25 62,714 $10,698 13 12 2803 $25 70,068 $12,076 14 13 2747 $25 68,671 $13,735 15 14 2478 $30 74,337 $11,271 16 15 2833 $30 84,986 $12,423 17 16 2524 $30 75,713 $11,870 18 17 2454 $30 73,616 $10,744 19 18 2642 $34 89,812 $11,305 20 19 2559 $34 87,020 $11,510 21 20 2471 $34 84,000 $10,956 22