The Accountants for Elliot, Inc

question 42

Multiple Choice

The accountants for Elliot, Inc. are preparing the operating departments overhead budgets. The Maintenance department direct costs are $12,000, and the Administration department direct costs are $54,000. The following data have been collected about use of services: Using the reciprocal method, the allocation from the maintenance department to Op1 department is:

• A) $6,000
• B) $13,600
• C) $13,421
• D) $12,000

---

Definitions:

Slope

In mathematics, the slope is the measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Regression Line

A line drawn through the set of datapoints that represents the best fit of the data according to a particular statistical criterion, often used in linear regression analysis.

Linear Relationship

A type of association where the change in one variable is directly proportional to the change in another variable.

Significance Level

The likelihood of incorrectly dismissing the null hypothesis in a statistical analysis, commonly represented by alpha, when it in fact holds true.