THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 45

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
An insurance company analyst is interested in analyzing the dollar value of damage in automobile accidents.She collects data from 115 accidents,and records the amount of damage as well as the age of the driver.The results of her regression analysis are listed below.
SUMMARY OUTPUT
-The regression equation is:

• A)y = 10725.802 + 69.964x
• B)y = 114 + 113x
• C)y = 1535.215 + 34.625x
• D)y = 113 + 114x

---

Definitions:

Direct Labor

Refers to the wages paid to workers who are directly involved in the production of goods or services.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected costs, indicating overhead management effectiveness.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as salaries of factory supervisors and rent of the manufacturing facility.

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost multiplied by the quantity of materials purchased, used as a measure of cost control.