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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-$95.000 + $9xDLH; R-square - 0.90]: [Y- $120,000 + $5xMhr: R-square = 0.10): [Y=190,000+20: R-square=0.55). How much of the variations on the overhead costs is explained by the quantity produced (Q)? Select one: a. None of the answers given b. 90% C. 55% d. 1096 e, 45% o All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a $10.00 increase in its selling price per unit will: Select one: O a. have no effect on the contribution margin ratio. O b. decrease the degree of operating leverage. Oc decrease the total contribution margin. O d. have no effect on the break-even volume. e. None of the given answers

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