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+20 R-square=0.52] Based on this information,%3Dwhich cost driver do you recommend?Select one:O a. All cost drivers are the sameOb. None of themOc Machine hours (Mhr)O d. Direct labor hours (DLH)Oe. Quantity produced (Q)

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 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 pro

Cost driver is any factor which causes a change in the cost of an activity A cost driver is the unit…

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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 +2Q R-square 0.52). Based on this information which cost driver do you recommend? Select one: O a All cost drivers are the same O b. None of them Oc Machine hours (Mhr) O d. Direct labor hours (DLH) Oe. Quantity produced (Q)

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 +2Q R-square 0.52). Based on this information which cost driver do you recommend? Select one: O a All cost drivers are the same O b. None of them Oc Machine hours (Mhr) O d. Direct labor hours (DLH) Oe. Quantity produced (Q)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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