Exhibit 15-5
Below You Are Given a Partial Excel Output $\beta$

question 6

Multiple Choice

Exhibit 15-5
Below you are given a partial Excel output based on a sample of 25 observations.
-Refer to Exhibit 15-5. The estimated regression equation is

• A)y = \(\beta\)₀ + \(\beta\)₁x₁ + \(\beta\)₂x₂ + \(\beta\)₃x₃ + \(\varepsilon\)
• B)E(y) = \(\beta\)₀ + \(\beta\)₁x₁ + \(\beta\)₂x₂ + \(\beta\)₃x₃
• C)= 145.321 + 25.625x₁ - 5.720x₂ + 0.823x₃
• D)= 48.682 + 9.15x₁ + 3.575x₂ + 0.183x₃

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Definitions:

Standard Machine-Hours

The estimated amount of machine time required to produce a single unit of production under normal operating conditions.

Fixed Manufacturing Overhead

Costs in the manufacturing process that do not vary with the volume of production, such as salaries of managers and depreciation of factory equipment.

Volume Variance

The difference between the expected volume of units produced or sold and the actual volume, affecting cost allocations in budgeting.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products, calculated at the beginning of a period based on expected costs and activity levels.