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Week	IndCosts	MachHours	DirectHours
1	1190	68	30
2	1211	88	35
3	1004	62	36
4	917	72	20
5	770	60	47
6	1456	96	45
7	1180	78	44
8	710	46	38
9	1316	82	70
10	1032	94	30
11	752	68	29
12	963	48	38

Managers are interested in modeling past cost behavior in order to make more accurate predictions of future costs. Models of past cost behavior are called cost functions. Factors that influence costs are called cost drivers. The cost data presented in the Excel file Rug.xlsx are from a rug manufacturer. Indirect manufacturing labor costs consist of machine maintenance costs and setup labor costs. Machine-hours and direct manufacturing labor-hours are cost drivers. Your task is to estimate and compare two alternative cost functions for indirect manufacturing labor costs. In the first, machine-hours is the independent variable; in the second, direct manufacturing labor-hours is the independent variable. Prepare a short report that compares the two cost functions and recommends which should be used to explain and predict indirect manufacturing labor costs. Be sure to justify your choice by presenting the relevant calculations and results

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