Figure 3-7 the Following Computer Printout Estimated Overhead Costs Using

question 72

Multiple Choice

Figure 3-7 The following computer printout estimated overhead costs using regression:
Please find the following statistical table
During the last accounting period 10,000 DLH were worked.
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Refer to Figure 3-7.What is the confidence interval for the predicted overhead cost rounded to the nearest whole number for a 90 percent confidence level?

• A) predicted value between 100,557 and 100,644
• B) predicted value between 100,600 and 175,648
• C) predicted value between 75,600 and 125,600
• D) none of these

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Variable Departmental Costs

Costs that vary directly with the level of output or activity within a specific department of a company.

Incremental Profit

The additional profit derived from making changes to the business operations, such as increasing production or sales.

Cash Payback Period

The duration of time it takes for an investment to generate enough cash flow to recover its initial cost.