44) In the linear cost function derived from regression analysis, the cost driver is the ________ variable and the cost to be explained is the ________ variable.

A) dependent; independent

B) independent; dependent

C) intercept; dependent

D) constant; independent

45) The Rumler Company used regression analysis to predict the annual cost of utilities. The results were as follows:

Utilities Cost

Explained by Direct Labor Hours

Constant4,500

Standard error of Y estimate595

R-Squared0.87

No. of observations30

Degrees of freedom28

X Coefficient5.04

Standard error of coefficient0.92

The total fixed cost is ________.

A) $5.04 times number of direct labor hours

B) $595

C) $4,500

D) none of the above

46) The Anthony Company used regression analysis to predict the annual cost of utilities. The results were as follows:

Utilities Cost

Explained by Direct Labor Hours

Constant4,500

Standard error of Y estimate595

R-Squared0.87

No. of observations30

Degrees of freedom28

X Coefficient5.02

Standard error of coefficient0.92

The variable cost per direct labor hour is ________.

A) $0.87

B) $0.92

C) $5.02

D) $4,500

47) The Lindsey Company used regression analysis to predict the annual cost of utilities. The results were as follows:

Utilities Cost

Explained by Direct Labor Hours

Constant5,000

Standard error of Y estimate595

R-Squared0.87

No. of observations30

Degrees of freedom28

X Coefficient4.02

Standard error of coefficient0.81

The linear cost function is ________ where Y = Total utilities cost and X = Number of direct labor hours.

A) Y = $5,000 + $0.87X

B) Y = $5,000 + $0.81X

C) Y = $595 + $0.81X

D) Y = $5,000 + $4.02X

48) The Joseph Company used regression analysis to predict the annual cost of utilities. The results were as follows:

Utilities Cost

Explained by Direct Labor Hours

Constant2,500

Standard error of Y estimate0.7

R-Squared0.85

No. of observations30

Degrees of freedom28

X Coefficient0.84

Standard error of coefficient0.92

The coefficient of determination is ________.

A) 0.70

B) 0.84

C) 0.85

D) 0.92

49) The Dorkin Company used regression analysis to predict the annual cost of indirect materials. The results were as follows:

Indirect Materials Cost

Explained by Units Produced

Constant4,200

Standard error of Y estimate2,300

R-Squared0.78

No. of observations22

Degrees of freedom20

X Coefficient250.25

Standard error of coefficient22.25

The total fixed cost is ________.

A) $22.25

B) $250.25

C) $2,300

D) $4,200

50) Noonan Company used regression analysis to predict the annual cost of indirect materials. The results were as follows:

Indirect Materials Cost

Explained by Units Produced

Constant4,200

Standard error of Y estimate2,300

R-Squared0.84

No. of observations22

Degrees of freedom20

X Coefficient2.30

Standard error of coefficient2.70

The variable cost per unit of product is ________.

A) $0.84

B) $1.00

C) $2.30

D) $2.70

51) Leno Company used regression analysis to predict the annual cost of indirect materials. The results were as follows:

Indirect Materials Cost

Explained by Units Produced

Constant14,885

Standard error of Y estimate9,960

R-Squared0.7832

No. of observations22

Degrees of freedom20

X Coefficient11.75

Standard error of coefficient2.1876

The linear cost function is ________ where Y = Total indirect materials cost and X = Number of units produced.

A) Y = $2.1876 + $9,960X

B) Y = $11.75 + $14,885X

C) Y= $9,960 + $14,885X

D) Y = $14,885 + 11.75X

52) Jayson Company used regression analysis to predict the annual cost of indirect materials. The results were as follows:

Indirect Materials Cost

Explained by Units Produced

Constant14,885

Standard error of Y estimate0.90

R-Squared0.60

No. of observations22

Degrees of freedom20

X Coefficient0.70

Standard error of coefficient2.1876

The coefficient of determination is ________.

A) 0.60

B) 0.70

C) 0.90

D) 1.10

53) When evaluating a cost function estimated by least squares regression, it is important to see if the estimated cost function makes economic sense. This is assessed by ________.

A) examining the sign of the coefficient of determination

B) examining the sign of the fixed cost estimate

C) examining the sign of the variable cost estimate

D