The following information was taken from a computer printout generated with the least-squares method for use...
The following information was taken from a computer printout
generated with the least-squares method for use in estimating
overhead costs:
| Slope | 45 |
| Intercept | 5,700 |
| Correlation coefficient | .72 |
| Activity variable | Direct labor hours |
The cost formula is
a.Overhead = $5,700 + ($45 × 0.72)
b.Overhead = $5,700 + $45X
c.Overhead = $5,700 − $45X
d.Overhead = $5,700 × 0.72
Homework Answers
Dear student...Thank you for using homeworklib.....answer is b.Overhead = $5,700 + $45X
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