Figure 3-7
The following computer printout estimated overhead costs using regression:
Please find the following statistical table
During the last accounting period 10,000 DLH were worked
.
-Refer to Figure 3-7. What is the model?
A) Overhead = 4.81 + 6.78 DLH
B) Overhead = 100.41 + 14.05 DLH
C) Overhead = 14.05 + 100.41 DLH
D) DLH = 4.81 + 6.78 Overhead

Question

Figure 3-7
The following computer printout estimated overhead costs using regression:
   Please find the following statistical table
  During the last accounting period 10,000 DLH were worked
.
-Refer to Figure 3-7. What is the model?
A) Overhead = 4.81 + 6.78 DLH 
B) Overhead = 100.41 + 14.05 DLH 
C) Overhead = 14.05 + 100.41 DLH 
D) DLH = 4.81 + 6.78 Overhead

Quizplus · Accepted Answer

The model is presented as "Overhead = intercept + (slope x DLH)," and in the statistical table, the intercept is 100.41 and the slope is 14.05. Therefore, the correct model is "Overhead = 100.41 + 14.05 DLH."

Figure 3-7 The Following Computer Printout Estimated Overhead Costs Using Regression