Figure 3-6 the Following Information Is Available for Maintenance Costs

question 71

Multiple Choice

Figure 3-6 The following information is available for maintenance costs:

-Refer to Figure 3-6.Using a computer or calculator, compute the estimate of maintenance costs at 100 units of production using the method of least squares.This value would be

• A) $291.
• B) $321.
• C) $336.
• D) $698.

---

Definitions:

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the volume of production, such as salaries of managers and depreciation of factory equipment.

Budget Variance

Budget Variance is the difference between the budgeted or planned amounts and the actual amounts spent or earned, used to evaluate financial performance.

Standard Hours

The expected amount of time required to produce a single unit or a batch of units under normal operating conditions.

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual products or job orders, calculated before the period begins based on estimated costs and activity levels.