The Hampshire Company Produces 9 Volt Batteries and AAA Batteries

question 29

Multiple Choice

The Hampshire Company produces 9 volt batteries and AAA batteries. The Hampshire Company uses a plant-wide rate to apply overhead based on direct labour hours. The following data is given:
$\begin{array}{|c|c|}\hline \text { Actual overhead } & \$ 325,000 \\\hline \text { Estimated overhead } & \$ 350,000 \\\hline \text { Estimated activity: } & \\\hline \text { 9 volt battery } & 100,000 \quad \text { direct labour hours } \\\hline \text { AAA battery } & 400,000 \text { direct labour hours } \\\hline \text { Actual activity: } & \\\hline 9 \text { volt battery } & 125,000 \quad \text { direct labour hours } \\\hline \text { AAA battery } & 400,000 \quad \text { direct labour hours } \\\hline \text { Units produced: } & \\\hline 9 \text { volt battery } & 500,000 \\\hline \text { AAA battery } & 250,000 \\\hline\end{array}$
-Refer to the figure.How much was overhead overapplied or underapplied?

• A)$17,500
• B)$25,000
• C)$42,500
• D)$50,000

Understand how to incorporate nominal or categorical variables into regression models using dummy variables.

Determine the need for and effect of including interaction terms in regression models.

Differentiate between various significance tests (e.g., t-tests, F-tests) used in regression analysis.

Interpret coefficients of independent variables and their impact on the dependent variable.

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