Your company is preparing an estimate of its production costs for the coming period. The controllerecimates that direct material costs are $45 er unit and that direct labor costs are $21 per hour Estimating overhead, which is applied on the basis of direct labor costs, is difficult. The controler's office estimated overhead costs at $3,600 for foed costs and $18 per unit for variable costs. Your colleague, Lance who graduated from a rival school, has already done the analysis and reports the correct cost equation as follows: Overhead = $10,600 - $16.05 per unit Lance also reports that the correlation coefficient for the regression is 0.82 and says. "With 82 percent of the variation in overhead explained by the equation. It certainly should be adopted as the best basis for estimating costs. When asked for the data used to generate the regression, Lance produces the following: Month Unit Production 3,048 Overhead $57.144 60,756 77.40 56,412 81.396 72,252 69,852 73,596 77.772 G.648 61.612 73.92 7324 3.00 1.40 3.928 3. 116 4,016 4.12 3.192 3.36 4.00 The company controller is somewhat surprised that the cost estimates are so different. You have therefore been assigned to check Lance's equation. You accept the assignment with glee. Removing any outliers Identified in the scattergraph, use Excel to perform a new regression analysis. (Round "intercept" value to 5 decimal places and "Unit Production to 7 decimal places.) Coefficients Intercept Unit Production What is the cost oquation with the new results? (Round variable cost per unit to 2 decimal places.) Overhead Cost = $ 10,000 + $ 1005 hits Type here to search