An Organisation's Accountant Is Estimating Next Period's Total Overhead Costs

question 41

Multiple Choice

An organisation's accountant is estimating next period's total overhead costs. She performed two regression analyses, one based on direct labor hours and the other based upon machine hours. The results were: Total overhead = $150,000 + $4 x direct labor hours
Adjusted R-square = 0.65
Total overhead = $130,000 + $5 x machine hours
Adjusted R-square = 0.77
For the next period the accountant anticipates using 28,000 direct labor hours and 26,000 machine hours. Based upon this information, what is the best estimate for overhead for the next period?

• A) $262,000
• B) $260,000
• C) $254,000
• D) $270,000

Understand how to choose visuals that align with the message or story being communicated.

Identify the role of time and comparison in visual data displays.

Appreciate the significance of source citation for data used in visuals.

Understand the need for accuracy and ethical practices in data visualization.

---

Definitions:

Resold

The action of selling an item or asset that has previously been sold or owned by someone else.

Monopolist's Profits

The earnings a monopolist achieves, which are typically higher than in competitive markets due to the ability to set prices above marginal costs.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers at those prices, typically downward sloping.

Monopolist

A monopolist is a producer or provider who has exclusive control over the supply of a particular good or service, enabling them to significantly influence or set prices.