Amigos Industries analyzed the relationship between total factory overhead and changes in direct labor hours. It found the following: Y = $6,000 + $6X
The Y in the equation is an estimate of
A)total variable costs.
B)total direct labor hours.
C)total factory overhead.
D)total fixed costs.

Question

Quizplus · Accepted Answer

The equation relates total factory overhead (Y) to changes in direct labor hours (X), indicating that Y is the dependent variable and is being estimated based on the independent variable X. Therefore, the correct answer is C, total factory overhead.

Amigos Industries Analyzed the Relationship Between Total Factory Overhead and Changes