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Meyer Grove Company has large overhead costs relative to its direct material and direct labor costs Because of the significance of these overhead costs .
Meyer Grove Company has large overhead costs relative to its direct material and direct labor costs Because of the significance of these overhead costs . management is trying to better understand what is driving them The management team has asked the , accountant to gather select information for some of the activities and product costs that they believe might be driving the overhead costs . The possible cost drivers that the team is looking at include direct labor hours machine hours , direct material costs and number of material moves . Data pertaining to the past 24 months for overhead costs as well as usage information for the possible cost drivers is presented below of material DL hours Machine hours DM costs moves Overhead costs JUL - 09 on 15 090 195000 Aug- 09 4 , 250 2, 250 21, 500 215.000 Sep -09 3. 500 2400 14 .700 175 000 Oct - 09 4 206 1950 20 090 260 090 NON- 09 4.500 2. 500 24. 500 300. 000 Dec - 09 4. 100 2.600 20.500 275 000 Jan- 10 3.500 3000 26 090 230. 000 Feb - 10 3. 900 2750 32 500 305 090 Mar - 10 4. 300 2000 31 500 320.000 Apr - 10 4 , 150 1 850 34.000 315 000 May- 10 4 450 2. 150 33 000 340.000 Jun - 10 3.850 2390 32000 280.000 JUL - 10 3.900 1800 34.000 270.000 Aug - 10 4, 050 2.250 32, 000 318000 Sep- 10 4. 300 2. 200 27.500 315 000 Oct - 10 4.350 2500 28.000 310.000 NOV - 10 4 100 2100 31 500 355000 Dec- 10 4 400 2, 250 22.500 325.000 Jan- 11 4 250 2.500 25.500 315 000 Feb - 11 4. 300 2. 400 32 000 345 000 Mar - 11 4 . 150 2.450 26 090 350 000 Apr - 11 4 500 2550 24.500 360. 000 May - 11 4 650 2.300 30.000 330.00 0 Jun- 11 4 , 250 2. 250 33 500 365 090 Required : ( 15 points ) THIS EXAM IS TO BE COMPLETED ON YOUR OWN Please type your answers in a Word document and upload it to the Regression Exam folde in the digital dropbox on our course DEL site by 12pm ( Noon ) on Thursday , Nov . 10 2011 I do not want you to copy and paste any of the regression output ; I just want you to explain why you chose one particular cost formula over the other possible formulas , and in the process you should cite relevant statistics , plot characteristics , etc . to back up your decision
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