Question
The following information was taken from a computer printout generated with the least-squares method for use in estimating overhead costs: Slope 45 Intercept 5,700 Correlation
The following information was taken from a computer printout generated with the least-squares method for use in estimating overhead costs:
| Slope | 45 |
| Intercept | 5,700 |
| Correlation coefficient | .72 |
| Activity variable | Direct labor hours |
The cost formula is
a.Overhead = $5,700 + ($45 0.72)
b.Overhead = $5,700 + $45X
c.Overhead = $5,700 $45X
d.Overhead = $5,700 0.72
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408076866
