Arfaei Company manufactures chairs.Because the efforts of manufacturing are approximately equal between labour and machinery, management is considering other possible cost drivers.By considering different cost drivers, it is anticipated that the estimating process can be improved.The following cost estimating equations with their r2 values have been determined for 2019:
Required:
a.Which equation should be selected for the analysis?
b.What other factors should be included in the selection of the estimating equation?
Definitions:
Sleep-walking
A sleep disorder characterized by walking or performing other complex behaviors while in a state of sleep.
Bed-wetting
A condition often seen in children where involuntary urination occurs during sleep beyond the age when bladder control usually occurs.
Outgrow
To develop or mature beyond a certain phase or size, often implying improvement or progress.
Sleep-walking
A sleep disorder causing people to get up and walk around or perform other complex behaviors while still mostly asleep, typically occurring during deep sleep.
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