Dandy Manufacturing Company uses two different independent variables (machine-hours and number of packages) in two different equations to evaluate costs of the packaging department. The most recent results of the two regressions are as follows:

Required:
a.What are the estimating equations for each cost driver?
b.Which cost driver is best and why?

Question

Dandy Manufacturing Company uses two different independent variables (machine-hours and number of packages) in two different equations to evaluate costs of the packaging department. The most recent results of the two regressions are as follows:
  
Required:
a.What are the estimating equations for each cost driver?
b.Which cost driver is best and why?

Quizplus · Accepted Answer

The Answer of Dandy Manufacturing Company uses two different independent variables (machine-hours and number of packages) in two different equations to evaluate costs of the packaging department. The most recent results of the two regressions are as follows:
  
Required:
a.What are the estimating equations for each cost driver?
b.Which cost driver is best and why?

Dandy Manufacturing Company Uses Two Different Independent Variables (Machine-Hours and Number