The Method of Least Squares Was Used to Develop a Cost

question 163

Multiple Choice

The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance for the Regina Company. The following computer output was received:
The driver used was the number of machine hours.
$\begin{array}{lr}\text { Intercept } & 32,000 \\\text { Slope } & 25\end{array}$
-Refer to the Figure.Assume that 5,000 machine hours will be incurred in April.What would be the predicted cost of equipment maintenance for April when using the cost formula for equipment maintenance?

• A)$32,000
• B)$93,000
• C)$125,000
• D)$157,000

Define and calculate lead time in supply chain management.

Comprehend the mechanics and applications of backflush costing systems.

Understand the assumptions and calculations involved in determining the break-even point for products.

Analyze the entire value chain and its significance in management accounting for strategic decision-making.

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