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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),

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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+20; R-square=0.52). Based on this information, which cost driver do you recommend? Select one: a. Machine hours (Mhr) b. All cost drivers are the same c. None of them O d. Direct labor hours (DLH) e. Quantity produced (Q) Assume that sales are predicted to be $11,250, the expected contribution margin is $4,500, and a net loss of $750 is anticipated. The break-even point in sales ($) is: Select one: a. 8,750 b. 9,375 O c. 13,125 d. 6,250 e. 12,000 Company XYZ expects the profit for next year to be higher than this year's profit. Assume that the selling price per unit, variable cost per unit, and total fixed costs will not change. Which one of the following is false

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