76. An organization's accountant is estimating next period's total overhead costs. She performed two regression analyses,...

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76. An organizations accountant is estimating next periods total overhead costs. She performed two regression analyses, one based on direct labour hours and the other based upon machine hours. The results were: Total overhead $150,000+ $4 x direct labour hours Adjusted R-square- 0.65 Total overhead $130,000 + $5 x machine hours Adjusted R-square 0.77 For the next period, the accountant anticipates using 28,000 direct labour hours and 26,000 machine hours. Based upon this information, what is the best estimate for overhead for the next a) $262,000 b) $260,000 )$254,000 d) $270,000 Answer: b Difficulty: Easy Learning Objective: Apply cost estimation techniques to determine the future costs. CPA: Management Accounting/Problem-Solving and Decision-Making Bloomcode: Application

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An 029ani2a tions accountant Ans b) sS 260000 Explanaion Rsquaze is siatistical measure ama shows houo derendant vasiable is paedictable farm andependant thend comula R 0 1 (eohich is higher thon fosmula anticipation theefo hoose sosmula based on machine Hou TOTCs oveshead F 130000$130000

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76. An organization's accountant is estimating next period's total overhead costs. She performed two regression analyses,...

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76. An organization's accountant is estimating next period's total overhead costs. She performed two regression analyses,...

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76. An organization's accountant is estimating next period's total overhead costs. She performed two regression analyses,...

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