Use the following information to answer Questions 8-12 Starlite Company is planning to introduce a new product that will sell for $12 a unit. The following manufacturing cost estimates have been made on 100,000 units to be produced the first year Direct materials S100,000 Direct labour costs 80,000 (the wage rate is $8 an hour x 10,000 labour Manufacturing overhead costs have not production and yet been estimated for the new product, but monthly data on total overhead costs for the past 24 months have been analyzed using simple linear regression. Ihe following results were derived from simple regression and provided the basis for overhead cost estimates for the new product. The coefficient of independent variable represents the variable overhead rate. The cost driver for variable overhead is direct labour hours. Simple Regression Analysis Results Dependant variable-Factory overhead costs Independent variable- Direct labour hours Computed values $110,000 Intercept Coefficient of independent variable Coefficient of correlation Coefficient of determination $6.40 0.953 0.908