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Question 20 Not yet answered XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based
Question 20 Not yet answered 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 = 0.95]; [Y= $190,000 + $5xMhr; R-square = 0.11]; [Y=200,000+2Q; R-square=0.52]. Based on this information, which cost driver do you recommend? Marked out of 0.60 Flag question Select one: O a. Quantity produced (Q) O b. All cost drivers are the same c. Machine hours (Mhr) O d. Direct labor hours (DLH) e. None of them Question 21 Not yet answered XYZ Company incurred the following costs for the month of August when it observed an activity level of 5,000 units: Variable costs $32,500; Fixed costs $25,000; Mixed costs $21,500; Total costs $79,000. During October, the activity level was 16,000 units, and the total costs incurred were $178,000. If the activity level were expected to be 13,000 units for the month of December, what amount of total costs would be expected? Marked out of 1.00 P Flag question Select one: a. None of the answers given b. $160,000 c. $178,000 O d. $151,000 e. $169,000
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