Use the results from the multiple regression and estimate the next month's manufacturing costs, assuming the company is planning to produce 92,000 units with an average lot size of 21. (final answer should be rounded to the nearest whole dollar). d. Briefly comment in the space provided on which regression seems to be more appropriate under these circumstances. What additional information would you like to see? Be specific. Mfg. OH Monthly Lot Month (Units) Average Question #3 The Feline Company has been having Production some difficulties estimating its manufacturing overhead Cost Size costs. In the past, manufacturing overhead costs have 75,000 $925,800 been related to production levels. However, some 2 production managers have indicated that the size of their $843.875 90,000 production lots might also be having an impact on the 65,000 $910,125 amount of their monthly manufacturing overhead costs. 80,000 $946,000 In order to investigate this possibility, the company 55,000 $879,000 collected information on its monthly manufacturing overhead costs, production in units, and average lot size 50,000 $825,000 for 2020. 85,000 $960,000 Regression analysis of overhead vs quantity is 105,000 $1,053,500 shown in the next table: Ordinary regression: 102,000 $1,020,000 OH Costs = $691,741 + $3.0692 units. 10 68,000 $905,000 Adj. R-squared = .628 75,000 $938,000 Multiple regression: 12 95,000 $995,000 OH Costs = $482,172 + $2.4918 units + Ave 78.750 $933,442 $11,770.939 x lot size. Adj. R-squared = .777 21.67| Required: a Estimate the relationship between lot size and manufacturing overhead costs using the high low model. Clearly indicate your estimates of variable cost per lot size unit and fixed costs. Show your 9 calculations b. Use the results from the ordinary regression and estimate next month's manufacturing overhead costs, assuming the company is planning to produce 92,000 units. (final answer should be rounded to the nearest whole dollar) Use the results from the multiple regression and estimate the next month's manufacturing costs, assuming the company is planning to produce 92,000 units with an average lot size of 21. (final answer should be rounded to the nearest whole dollar). d. Briefly comment in the space provided on which regression seems to be more appropriate under these circumstances. What additional information would you like to see? Be specific. Mfg. OH Monthly Lot Month (Units) Average Question #3 The Feline Company has been having Production some difficulties estimating its manufacturing overhead Cost Size costs. In the past, manufacturing overhead costs have 75,000 $925,800 been related to production levels. However, some 2 production managers have indicated that the size of their $843.875 90,000 production lots might also be having an impact on the 65,000 $910,125 amount of their monthly manufacturing overhead costs. 80,000 $946,000 In order to investigate this possibility, the company 55,000 $879,000 collected information on its monthly manufacturing overhead costs, production in units, and average lot size 50,000 $825,000 for 2020. 85,000 $960,000 Regression analysis of overhead vs quantity is 105,000 $1,053,500 shown in the next table: Ordinary regression: 102,000 $1,020,000 OH Costs = $691,741 + $3.0692 units. 10 68,000 $905,000 Adj. R-squared = .628 75,000 $938,000 Multiple regression: 12 95,000 $995,000 OH Costs = $482,172 + $2.4918 units + Ave 78.750 $933,442 $11,770.939 x lot size. Adj. R-squared = .777 21.67| Required: a Estimate the relationship between lot size and manufacturing overhead costs using the high low model. Clearly indicate your estimates of variable cost per lot size unit and fixed costs. Show your 9 calculations b. Use the results from the ordinary regression and estimate next month's manufacturing overhead costs, assuming the company is planning to produce 92,000 units. (final answer should be rounded to the nearest whole dollar)