Answer the Following Questions Using the Information Below:
the Nowra

question 30

Multiple Choice

Answer the following questions using the information below:
The Nowra Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable.Nowra Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
$$\begin{array} { l r r } \text { Month } & \text { Cost } & \text { Hours } \\\text { January } & \$ 40000 & 3500 \\\text { February } & 24400 & 2000 \\\text { March } & 31280 & 2450 \\\text { April } & 36400 & 3000 \\\text { May } & 44160 & 3900 \\\text { June } & 42400 & 3740\end{array}$$
-The coefficient of determination is important in explaining variances in estimating equations.For a certain estimating equation,the unexplained variation was given as 51 900.The total variation was given as 115 333.What is the coefficient of determination for the equation?

• A)0.66
• B)0.55
• C)0.57
• D)0.45

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Definitions:

Delivery Equipment

Assets such as trucks and vans that are used by a business to transport products to customers.

Buildings

Physical structures owned by a business or entity used for operations, manufacturing, or office space.

Modified Accelerated Cost Recovery System (MACRS)

A method of depreciation in the United States that allows for a faster write-off of asset value for tax purposes.

Depreciation Method

A systematic approach to allocate the cost of a tangible asset over its useful life, reflecting the asset's wear and tear, decay, or decline in value.