2 a) A production manager concerned about the relationship ofmachine hours and indirect labour cost. Estimate the following datato help manager the unit properly in future. The results are asshown below.
Week | Machine Hour | Indirect Labour (cost) |
1 | 68 | 1190 |
2 | 88 | 1211 |
3 | 62 | 1004 |
4 | 72 | 917 |
5 | 60 | 770 |
6 | 96 | 1456 |
7 | 78 | 1180 |
8 | 46 | 710 |
9 | 82 | 1316 |
10 | 94 | 1032 |
11 | 68 | 752 |
12 | 48 | 963 |
Required: Using least square method;
- Establish the regression function for the manager.
- Using the functions determine the indirect labour cost at 35units and 90 units of machinehours.
