Use the Information Below to Answer the Following Question(s)

question 114

Multiple Choice

Use the information below to answer the following question(s) .Raymaster is a small computer software company which uses the account analysis method and has hired you to perform some management advisory services.The company sold 2,500 high quality payroll programs last year.
-What is the predicted indirect manufacturing labour cost if 160 machine-hours are budgeted and 170 are actually worked, assuming the estimated cost function is y = $81.04 + 5.32x?

• A)$985.44
• B)$932.24
• C)$904.40
• D)$851.20
• E)$81.04

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Definitions:

SSE

Sum of Squared Errors, a measure of the total deviation of response values from the fit values in statistical models.

SS(Total)

The total sum of squares in an analysis of variance, representing the total variation in the data.

SS(Blocks)

Sum of Squares due to Blocks, a term used in analysis of variance (ANOVA) to quantify variability among different blocks or groups in an experimental design.

Blocked Experiment

An experimental design in which units are grouped (blocked) based on similar characteristics before being randomly assigned to treatments, to reduce variation.