Rush Company Is Trying to Find an Appropriate Allocation BaseR=\[\frac { \Sigma ( X - X ) ( Y \cdot Y ) } { \left( \Sigma ( X - X ) ^ { 2 } \Sigma ( Y - Y ) ^ { 2 } \right) ^ {5 } }\]

The Answer of Rush Company Is Trying to Find an Appropriate Allocation BaseR=\[\frac { \Sigma ( X - X ) ( Y \cdot Y ) } { \left( \Sigma ( X - X ) ^ { 2 } \Sigma ( Y - Y ) ^ { 2 } \right) ^ {5 } }\]

Rush Company Is Trying to Find an Appropriate Allocation BaseR=\[\frac { \Sigma ( X - X ) ( Y \cdot Y ) } { \left( \Sigma ( X - X ) ^ { 2 } \Sigma ( Y - Y ) ^ { 2 } \right) ^ {5 } }\]

The Answer of Rush Company Is Trying to Find an Appropriate Allocation BaseR=\[\frac { \Sigma ( X - X ) ( Y \cdot Y ) } { \left( \Sigma ( X - X ) ^ { 2 } \Sigma ( Y - Y ) ^ { 2 } \right) ^ {5 } }\]

Solved

Rush Company Is Trying to Find an Appropriate Allocation Base

question 43

Essay

Rush Company is trying to find an appropriate allocation base for factory overhead.Presented are five months of data:
$\begin{array}{|l|c|c|c|}\hline \text { Month } & \begin{array}{c}\text { Direct Labour } \\\text { Hours }\end{array} & \text { Machine Hours } & \text { Factory Overhead } \\\hline \text { January } & 10 & 3 & \$ 45 \\\hline \text { February } & 20 & 5 & 75 \\\hline \text { March } & 15 & 4 & 70 \\\hline \text { Apri } & 30 & 5 & 130 \\\hline \text { May } & 25 & 3 & 80\\\hline \end{array}$ r= $\frac { \Sigma ( X - X ) ( Y \cdot Y ) } { \left( \Sigma ( X - X ) ^ { 2 } \Sigma ( Y - Y ) ^ { 2 } \right) ^ {5 } }$
a.Calculate the correlation coefficient between factory overhead and direct labour hours.
b.Calculate the correlation coefficient between factory overhead and machine hours.
c.Should Rush Company use direct labour hours or machine hours for its allocation base for factory overhead? Why?

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Economic Performance Approach

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The study of laws related to commercial transactions and taxation, focusing on how they influence business operations and financial practices.

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Rules and guidelines that auditors are required to follow when conducting audits of companies’ financial statements, ensuring consistency, reliability, and integrity in the audit process.