The Following Computer Printout Estimated Overhead Costs Using Multiple Regression

question 5

Multiple Choice

The following computer printout estimated overhead costs using multiple regression:

During the year the company used 1,000 setup hours and 500 parts.
-Refer to the figure.What model is being measured?

• A)Overhead = 0.98 + 40.98(Setup hours)+ 4.865(# of parts)
• B)Overhead = 510 + 0.305(Setup hours)+ 10.527(# of parts)
• C)Overhead = 1,000 + 25(Setup hours)
• D)Overhead = 1,000 + 25(Setup hours)+ 100(# of parts)

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Definitions:

Measure

A method or tool used to quantify or evaluate a variable or quantity.

Schedule

A plan that outlines tasks, activities, or events, including their intended start and finish times, in a structured sequence.

Current Ratio

A financial metric indicating how well a company can fulfill its immediate liabilities, using the formula of dividing its current assets by its current liabilities, specifically for debts due within one year.

Account Balances

The amounts of money present in an account at a particular moment, reflecting all transactions.