Interpreting Regression ResultsSimple Regression: A fast-food restaurant, McGlurgs, is estimating overhead based on food cost. Data were

Question:

Interpreting Regression Results—Simple Regression: A fast-food restaurant, McGlurgs, is estimating overhead based on food cost. Data were gathered for the past 24 months and entered into a regression program. The following output was obtained:

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The company is planning to operate at a level of $24,000 of food costs per month for the coming year.

Required:

a. Use the regression output to write the overhead cost equation.

b. Based on the cost equation, compute the estimated overhead cost per month for the coming year.

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Cost Accounting

ISBN: 9780256069198

3rd Edition

Authors: Edward B. Deakin, Michael Maher

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Question Posted: Jun 26, 2024 03:07 AM

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Interpreting Regression ResultsSimple Regression: A fast-food restaurant, McGlurgs, is estimating overhead based on food cost. Data were

Question:

Equation: Intercept Slope Statistical data: Correlation coefficient R-square Adjusted R-square $21,405 1.150 .872 .760 .731

Step by Step Answer:

Cost Accounting

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