Rush Company is trying to find an appropriate allocation base for factory overhead. Presented are five months of data: 
r = 
Required:
a.
Calculate the correlation coefficient between factory overhead and direct labour hours.
b.
Calculate the correlation coefficient between factory overhead and machine hours.
c.
Should Rush Company use direct labour hours or machine hours for their allocation base for factory overhead? Why?
Definitions:
Organization Chart
A visual diagram that shows the structure of an organization and the relationships among its parts.
Sociocultural Development
The process of learning and incorporating the values, beliefs, behaviors, and norms of one's culture and society.
Economic Development
The process by which a region improves the economic, political, and social well-being of its people.
Control System
A set of mechanisms or procedures designed to direct, manage, or regulate the behavior of other devices or systems to achieve desired outcomes.
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