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carmy choice XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor
carmy choice XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$150,000 + $10xDLH; R- square = 0.111: [Y= $190,000 + $5xMhe R-square = 0.951: LY=200,000+20 R-square=0.52]. Based on this information, which cost driver do you recommend? Select one: O a. Quantity produced (Qy b. Machine hours (M) a Direct labor hours (DLH) d. All cost drivers are the same Del None of them Next page
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