Corrine Corporation, which uses least-squares regression analysis, has derived the following regression equation for estimates of manufacturing overhead: Y = 514,000 + 6.60X. Which of the following statements is true if the primary cost driver is machine hours?

Multiple Choice

• "X" represents the number of machine hours.
• Total manufacturing overhead is represented by the variable "X."
• Incorrect
• The company anticipates $514,000 of fixed manufacturing overhead and "X" represents the number of machine hours.
• "X" is commonly known as the dependent variable.
• The company anticipates $514,000 of fixed manufacturing overhead.