TABLE 14-1
a Manager of a Product Sales Group

question 60

Multiple Choice

TABLE 14-1
A manager of a product sales group believes the number of sales made by an employee (Y) depends on how many years that employee has been with the company (X₁) and how he/she scored on a business aptitude test (X₂) . A random sample of 8 employees provides the following:
$$\begin{array} { c r r r } \text { Employee } & Y & X _ { 1 } & X _ { 2 } \\\hline 1 & 100 & 10 & 7 \\2 & 90 & 3 & 10 \\3 & 80 & 8 & 9 \\4 & 70 & 5 & 4 \\5 & 60 & 5 & 8 \\6 & 50 & 7 & 5 \\7 & 40 & 1 & 4 \\8 & 30 & 1 & 1\end{array}$$
-Referring to Table 14-1, for these data, what is the estimated coefficient for the variable representing scores on the aptitude test, b₂?

• A) 3.103
• B) 4.698
• C) 21.293
• D) 0.998

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Definitions:

Activity-Based Costing

A costing methodology that assigns costs to products based on the activities required to produce them, aiming to provide more accurate product costing.

Estimated Overhead Cost

The predicted cost of all indirect production expenses for a specific period, which can include utilities, rent, and salaries for support staff.

Expected Activity

The anticipated level of operations based on projections, such as hours worked, units produced, or services rendered.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of the activities.