Based on analyzing the relationship of total factory overhead (Y) to direct labor hours (X). The following relationship was found:
Y = $1,000 + $2X
The relationship is:
A) Data shift.
B) Nonlinear.
C) Linear.
D) Probabilistic.

Question

Quizplus · Accepted Answer

The given relationship is in the form of a linear equation, where the dependent variable Y (total factory overhead) is a linear function of the independent variable X (direct labor hours). The equation has a constant term ($1,000) and a coefficient of X ($2), indicating a constant rate of change between Y and X. Therefore, the relationship is linear.

Based on Analyzing the Relationship of Total Factory Overhead (Y)