Use This Information to Answer the Following Question(s)

question 63

Essay

Use this information to answer the following question(s):
The following output of overhead on direct labor hours was obtained using regression analysis:


The company is planning to operate at a level that would call for 3,000 direct labor hours to be utilized for the coming year.
Refer to the above data;use the regression output to write out the overhead cost equation.

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Definitions:

Most Profitable

Referring to the highest gain or financial return compared to costs or investments.

Product

A good, idea, method, information, object, or service created as a result of a process and serves a need or satisfies a want.

Split-off Point

The stage in a process where multiple products become separately identifiable, and each can be processed further or sold.

Processing Further

A decision-making process in cost accounting used to determine whether additional costs should be incurred in further processing products before sale.