Use the Information Below to Answer the Following Question(s)

question 59

Multiple Choice

Use the information below to answer the following question(s) .
Bernie Company used regression analysis to predict the annual cost of indirect materials. The results were as follows:
Indirect Materials Cost Explained by Units Produced

-The linear cost function is

• A) Y =.$918 + 0.44X.
• B) Y = $912 + $1.03X.
• C) Y = $4,020 + $0.92X.
• D) Y = $4,378+ $0.92X.
• E) Y = $4,378 + $2.35X.

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Definitions:

Flexible Budget

A flexible budget adjusts based on changes in the volume of activity, allowing for a more accurate comparison of actual to budgeted performance.

Tenant-Days

The total number of days rented across all properties within a specified timeframe, used for calculating occupancy rates and revenue in the hospitality or rental sector.

Administrative Expenses

Costs related to the general operation of a business that are not directly tied to the production of goods or services, such as office supplies, salaries of administrative staff, and utilities.

Planning Budget

A budget prepared for a particular level of activity; it can be adjusted for various levels of operations, and it aids in the planning process.