
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Nas corporation's manager in the stamping department have been studying the overhead cost
and the relationship machine hours. Data from the most recent 12 months
Month
Overhead
Machine hours
January
February
5,030
2,730
1,600
600
March
7,210
3,403
April
4,560
2,200
May
6,880
3,411
June
6,520
2,586
July
6,230
3,364
August
5,570
2,411
September
7,728
3,960
October
5,810
2,897
November
4,580
2,207
December
6,010
2,864
The manager of the department has requested a regression analysis of
these two variables. The staff person performing the analysis decided to
exclude February. She observed the volume of activity was very low for
that month because of two factors: A severe flue outbreak and an
electrical fire that disrupted operations for about 10 working days.

Transcribed Image Text:Using the least square (regression) analysis, compute the fixed cost.
Using the least square (regression) analysis, how much is the estimated overhead costs for 3,000 machine hours?
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