Exhibit 11.9 The Following Questions Use the Data Below

question 18

Multiple Choice

Exhibit 11.9
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a linear trend model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is in the following table.
-Refer to Exhibit 11.9. What formula should be entered in cell E3 to compute the linear trend for year 1 Quarter 1?

• A) = 114.1364 + 69.7902 * 3
• B) = 114.1364 + 69.7902 * 1
• C) = 114.1364 + 69.7902 * 1991
• D) = 114.1364 + 69.7902 * 284

---

Definitions:

Direct Labor Requirement

The total amount of work time needed by employees to produce a good or service, often used in budgeting and planning manufacturing processes.

Labor Rate

The cost associated with hiring labor, often expressed per hour or unit of work.

Sales Budget

A financial plan that forecasts the sales revenue, including the volume of sales and the unit prices, for a specific period.

Rolling Budgets

Budgets that are continuously updated by adding a new budget period as the current period is completed, extending the budget into the future.