Exhibit 14-1 a Regression Analysis Resulted in the Following Information Regarding a Regarding

question 65

Multiple Choice

Exhibit 14-1
A regression analysis resulted in the following information regarding a dependent variable (y) and an independent variable (x) .
-Refer to Exhibit 14-1. The least squares estimate of b₀ equals

• A)1
• B)-1
• C)5.5
• D)11

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Definitions:

Denominator Level

In costing, refers to the level of activity or volume used to allocate fixed costs to units of production.

Standard Hours Allowed

The time allocated for a job or process to be completed, based on efficiency and productivity standards.

Actual Direct Materials

The actual amount of raw materials used in the production process.

Standard Price

A set cost figure used to value inventory or measure cost performance, often compared to actual prices to calculate variances.