Exhibit 13-8
the Following Estimated Regression Model Was Developed Relating $\hat { Y }$

question 69

Multiple Choice

Exhibit 13-8
The following estimated regression model was developed relating yearly income Y in $1,000s) of 30 individuals with their age X1) and their gender X2) 0 if male and 1 if female) .
$\hat { Y }$ =30+0.7X1+3X2
Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 13-8. The yearly income of a 24-year-old male individual is

• A) $13.80
• B) $13,800
• C) $46,800
• D) $49,800

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated for the actual production level, often driven by efficiency in using the variable overhead resources.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated, based on the actual amount of the allocation base used.

Supplies

Materials and items used in the daily operations of a business that do not directly become part of the final product.

Flexible Budget

A budget that modifies based on fluctuations in activity levels or volume.