Dandy Manufacturing Company Uses Two Different Independent Variables (Machine-Hours and Number

question 182

Essay

Dandy Manufacturing Company uses two different independent variables (machine-hours and number of packages)in two different equations to evaluate costs of the packaging department.The most recent results of the two regressions are as follows:
Machine-hours:


Number of packages:


Required:
a.What are the estimating equations for each cost driver?
b.Which cost driver is best and why?

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Definitions:

α

Often represents alpha, a term used in various scientific fields, such as alpha particles in physics, alpha helices in protein structure, or significance levels in statistics.

Cambrian

A geological period approximately 541 million years ago, marked by a rapid increase in the diversity of life forms on Earth, known as the “Cambrian explosion.”

Animal Diversity

The vast range of different animals that exist on Earth, including variations in size, structure, habitat, and behavior.

Oxygenation

The process of adding oxygen to an environment, often related to the uptake of oxygen by living organisms for respiration.