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Wythe Industries is in the process of analyzing its manufacturing overhead costs. Wythe Industries is not sure if the number of units produced or number
Wythe Industries is in the process of analyzing its manufacturing overhead costs. Wythe Industries is not sure if the number of units produced or number of direct labour hours is the best cost driver to use for predicting manufacturing overhead costs. The following information is available: (Click the icon to view the information.) Requirements Requirement 1. Use Excel regression analysis to determine Wythe Industries' manufacturing overhead cost equation using DL hours as the cost driver. (Round your answers to the nearest cent.) y = + * Requirements i Data Table MOH MOH Direct Cost per Cost per Manufacturing Overhead Labour Units DL Unit 1. Use Excel regression analysis to determine Wythe Industries' manufacturing overhead cost equation using DL hours as the cost driver. Comment on the R-square. Estimate MOH costs if Wythe Industries incurs 24,200 DL hours in January. 2. Use Excel regression analysis to determine Wythe's MOH cost equation using number of units produced as the cost driver. Use all of the data provided. Project total MOH costs if Wythe Industries produces 5,200 units. Which cost equation is betterthis one or the one from Question 1? Why? 3. Use Excel regression analysis to determine Wythe Industries' MOH cost equation using number of units produced as the cost driver. This time, remove any potential outliers before performing the regression. How does this affect the R-square? Project total MOH costs if 5.200 units are produced. 4. In which cost equation do you have the most confidence? Why? Month Costs Hours Produced Hour Produced July $ 457.000 23,200 19.70 S 127.65 3,580 $ 4,290 512.000 26,600 19,000 19.25 22.16 119.35 99.29 421,000 August September October November December 4,240 3,430 20.88 Print Done 449,000 571,000 21,500 31,000 130.90 99.65 5,730 18.42 434,000 19,700 3,220 22.03 134.78 Print Done
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