Figure 3-8 The Following Computer Printout Estimated Overhead Costs Using Multiple Regression

question 30

Multiple Choice

Figure 3-8
The following computer printout estimated overhead costs using multiple regression:
During the year the company used 1,000 setup hours and 500 parts.
-Refer to Figure 3-8. Which slope and intercept parameters are significant at the 0.05 level?

• A) intercept
• B) setup hours
• C) number of parts
• D) all of the above

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Definitions:

Work in Process

Inventory that includes goods partially completed but not yet ready for sale, representing costs of direct labor, materials, and overhead.

Equivalent Units

A term used in cost accounting to express the amount of work done during a period in terms of complete units of output.

First-in

A method used in inventory valuation where the first goods purchased are the first ones to be used or sold.

Materials

Raw inputs used in the manufacturing of products or goods, part of the direct costs in production.