Exhibit 12-1 a Regression Analysis Resulted in the Following Information Regarding a Regarding

question 77

Multiple Choice

Exhibit 12-1
A regression analysis resulted in the following information regarding a dependent variable (y) and an independent variable (x) .

-Refer to Exhibit 12-1. The point estimate of y when x  20 is

• A)0
• B)31
• C)9
• D)-9

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Definitions:

Overhead Cost Per Unit

The indirect manufacturing costs allocated to each unit of product produced.

Departmental Overhead Rate

A rate used to allocate overhead costs to specific departments, calculated based on the relationship between indirect costs and activity level.

Own Allocation Base

Refers to the specific denominator that a company chooses to allocate indirect costs to different cost objects, based on their usage or benefit from those costs.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing facility to allocate overhead costs to products.