Corrine Corporation, Which Uses Least-Squares Regression Analysis, Has Derived the Following

question 60

Multiple Choice

Corrine Corporation, which uses least-squares regression analysis, has derived the following regression equation for estimates of manufacturing overhead: Y = 495,000 + 5.65X. Which of the following statements is true if the primary cost driver is machine hours?

• A) Total manufacturing overhead is represented by the variable "X."
• B) The company anticipates $495,000 of fixed manufacturing overhead.
• C) "X" is commonly known as the dependent variable.
• D) "X" represents the number of machine hours.
• E) The company anticipates $495,000 of fixed manufacturing overhead and "X" represents the number of machine hours.

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Definitions:

Chronic Obstructive Pulmonary Disease

A progressive lung disease characterized by increasing breathlessness, often caused by smoking.

Respiratory

Pertaining to or serving for respiration, which is the process of inhaling oxygen and exhaling carbon dioxide.

Chronic Obstructive Pulmonary Disease

A long-term inflammatory lung disease that causes obstructed airflow from the lungs, involving conditions such as emphysema and chronic bronchitis.

Frequent Infection

An increased occurrence of infections, indicating a possible immune system deficiency.