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	Possibility #1	Possibility #2	Possibility #3	Indirect
	Machine	# of	# of	Mfg Labor
Week	Hours	Batches	DMLH	Costs
1	97.50	21	55.00	$1,475.00
2	57.50	9	47.50	$887.50
3	102.50	18	87.50	$1,645.00
4	117.50	15	37.50	$1,290.00
5	85.00	9	36.25	$940.00
6	60.00	18	47.50	$1,203.75
7	85.00	15	37.50	$1,487.50
8	110.00	19	43.75	$1,513.75
9	77.50	16	45.00	$1,255.00
10	90.00	14	25.00	$1,146.25
11	75.00	13	58.75	$962.50
12	120.00	15	56.25	$1,820.00
Required:
(1) Using the data observations for Possibility #3, derive a cost function using the high-low method.
(2) If Harrington anticipates 31.25 DMLH for Week 13, what are their expected indirect manufacturing costs
for that week, using the cost function derived in #1?
(3) What is the major disadvantage of the High-Low method?
(4) Using Excel's simple regression, which of the three possible cost drivers is the best choice?
Show the scattergraph, equation, and r value for all three; justify your choice using the 3 criteria.
(5) If Harrington anticipates 31.25 DMLH hours, 20 batches, and 93.75 machine hours for Week 13, what are
their expected indirect manufacturing labor costs for that week, using the cost function from your
BEST choice in #4?

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