X Data table Production Overhead Quarter in Units Costs 1/06 73 $ 715 2/06 76 709 3/06 61 674 4/06 133 1, 124 1/07 122 995 2/07 125 1,105 3/07 122 1,113 4/07 130 1,036 1/08 121 982 2/08 126 1,060 3/08 112 990 4/08 81 951 1/09 81 829 2/09 119 1,044 3/09 87 985 Print DoneOn November 15, 2009, Sandra Cook. a newly hired cost analyst at Demgren Company. was asked to predict overhead costs for the company's operations in 2010, when 535 units are expected to be produced. She collected the following quarterly data: --- (Click the icon to view the quarterly data.) Requirements 1. Using the high-low method to estimate costs, prepare a prediction of overhead costs for 2010. 2. Sandy ran a regression analysis using the quarterly data she collected. The result was: Y = $383 + $5.46X. Using this cost function (based on quarterly data), predict overhead costs for 2010. 3. Which prediction do you prefer? Why? Requirement 1. Using the high-low method to estimate costs, prepare a prediction of overhead costs for 2010. Begin by estimating the cost function for a quarter year using the high-low method. (Enter the quarterly xed cost rounded to two decimal places and the variable cost rounded to four decimal places.)