Wang Manufacturing uses regression analysis to predict manufacturing overhead costs based on labor-hours and/or machine-hours and has

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Wang Manufacturing uses regression analysis to predict manufacturing overhead costs based on labor-hours and/or machine-hours and has developed the three following regression equations.

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Which regression would you choose and why?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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Question Posted: Apr 18, 2013 04:10 AM

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Wang Manufacturing uses regression analysis to predict manufacturing overhead costs based on labor-hours and/or machine-hours and has

Question:

SE R-squared t-values Regression 1 33,844 0.55 Regression 2 45,383 0.35 Regression 3 31,044 0.58 2.3 Labor-hours Machine-hours 1.9 0.8 1.1

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Regression one uses only labor hours regression two uses only machine hours and regression uses them ...View the full answer

Cost management a strategic approach

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