XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed threeregression 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+2Q; R-square=0.52]. Based on thisinformation, which cost driver do you recommend?Select one:O a. Machine hours (Mhr)O b. Direct labor hours (DLH)O c. None of themO d. Quantity produced (Q)O e. All cost drivers are the same

Name: XYZ Company's accountant is estimating next period's total overhead c
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Description: XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed threeregression 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 prod

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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 + $10×DLH; R-square = 0.95]; [Y= $190,000 + $5xMhr; R-square = 0.11]; [Y=200,000+2Q; R-square=0.52]. Based on this information, which cost driver do you recommend? Select one: O a. Machine hours (Mhr) O b. Direct labor hours (DLH) O c. None of them O d. Quantity produced (Q) O e. All cost drivers are the same

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 + $10×DLH; R-square = 0.95]; [Y= $190,000 + $5xMhr; R-square = 0.11]; [Y=200,000+2Q; R-square=0.52]. Based on this information, which cost driver do you recommend? Select one: O a. Machine hours (Mhr) O b. Direct labor hours (DLH) O c. None of them O d. Quantity produced (Q) O e. All cost drivers are the same

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 3PA: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it...

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