The Following Computer Printout Estimated Overhead Costs Using Regression $\begin{array}{cc}\text { R Square (R2) } & 0.80 \\\text { Standard Error (Se) } & 25.03 \\\text { Observations } & 17\end{array}$

question 96

Multiple Choice

The following computer printout estimated overhead costs using regression: $\begin{array}{ccccc}&\text {\(t \text { for } H(0) \) }&&&\text { Std. error}\\ \text {Parameter }& \text { Estimate}& \text { Parameter \( =0 \) }&\text {\( \operatorname{Pr} >\mathrm{t} \) }& \text {of parameter }\\\text { Intercept } & 100.41 & 4.81 & 0.0003 & 20.88 \\\text { DLH } & 14.05 & 6.78 & 0.0001 & 2.07\end{array}$

$\begin{array}{cc}\text { R Square (R2) } & 0.80 \\\text { Standard Error (Se) } & 25.03 \\\text { Observations } & 17\end{array}$
Please find the following statistical table
$\begin{array}{|c|c|c|c|c|c|c|c|}\hline \begin{array}{c}\text { degrees } \\\text { of freed om }\end{array} & 90 \% & 95 \% & \mathbf{9 9 \%} & \begin{array}{c}\text { degrees of } \\\text { freedom }\end{array} & \mathbf{9 0 \%} & \mathbf{9 5 \%} & \mathbf{9 9 \%} \\\hline 1 & 6.314 & 12.708 & 63.657 & 11 & 1.796 & 2.201 & 3.106 \\\hline 2 & 2.920 & 4.303 & 9.925 & 12 & 1.782 & 2.179 & 3.055 \\\hline 3 & 2.353 & 3.182 & 5.841 & 13 & 1.771 & 2.160 & 3.055 \\\hline 4 & 2.132 & 2.776 & 4.604 & 14 & 1.761 & 2.145 & 3.012 \\\hline 5 & 2.015 & 2.571 & 4.032 & 15 & 1.753 & 2.131 & 2.947 \\\hline 6 & 1.943 & 2.447 & 3.707 & 16 & 1.746 & 2.120 & 2.921 \\\hline 7 & 1.895 & 2.365 & 3.499 & 17 & 1.740 & 2.110 & 2.898 \\\hline 8 & 1.860 & 2.306 & 3.355 & 18 & 1.734 & 2.101 & 2.878 \\\hline 9 & 1.833 & 2.262 & 3.250 & 19 & 1.729 & 2.093 & 2.861 \\\hline 10 & 1.812 & 2.228 & 3.169 & 20 & 1.725 & 2.086 & 2.845\\\hline\end{array}$
During the last accounting period 10,000 DLH were worked.
What is the model?

• A)Overhead = 4.81 + 6.78 DLH
• B)Overhead = 100.41 + 14.05 DLH
• C)Overhead = 14.05 + 100.41 DLH
• D)DLH = 4.81 + 6.78 Overhead

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Definitions:

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions happen.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for the effects of transactions that do not involve cash.

Exchange

is a marketplace where securities, commodities, derivatives, or other financial instruments are traded.