Based on Analyzing the Relationship of Total Factory Overhead (Y)

question 7

Multiple Choice

Based on analyzing the relationship of total factory overhead (Y) to direct labor hours (X) . The following relationship was found:
Y = $1,000 + $2X
The $2 in the equation is an estimate of:

• A) Total fixed costs.
• B) Variable overhead costs per direct labor hour.
• C) Total overhead costs.
• D) Fixed overhead costs per direct labor hour.

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