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Based on analyzing the relationship of total factory overhead (Y) to direct labor hours (X). The following relationship was found: Y = $1,000 + $2X
Based on analyzing the relationship of total factory overhead (Y) to direct labor hours (X). The following relationship was found:
Y = $1,000 + $2X |
The $2 in the equation is an estimate of:
Total fixed costs. | ||
Total overhead costs. | ||
Fixed overhead costs per direct labor hour. | ||
Variable overhead costs per direct labor hour. |
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