Construct a Scatter Diagram for the Given Data
- $$r = 0.845 , n = 5$$

question 80

Multiple Choice

Construct a scatter diagram for the given data
- $$r = 0.845 , n = 5$$

• A) Critical values: \(r = 0.950\), significant linear correlation
• B) Critical values: \(r = \pm 0.950\), no significant linear correlation
• C) Critical values: \(r = \pm 0.878\), no significant linear correlation
• D) Critical values: \(\mathrm { r } = \pm 0.878\), significant linear correlation

---

Definitions:

Overhead Rate

The total of indirect costs of production compared to a base activity measure, like labor hours, used to assign costs to products.

Manufacturing Overhead

These are indirect factory-related costs that are incurred when producing a product, such as utility costs, depreciation, and salaries of supervisors.

Direct Labor-Hours

Direct labor-hours refer to the total hours worked by employees directly involved in the production process.

Traditional Costing

An accounting method that applies indirect costs to products based on a predetermined overhead rate.