Figure 3-8
The following computer printout estimated overhead costs using multiple regression:
During the year the company used 1,000 setup hours and 500 parts.
-Refer to Figure 3-8. The model being measured is
A) Overhead = 1,000 + 25(Setup hours) + 100(# of parts)
B) Overhead = 510 + 0.305(Setup hours) + 10.527(# of parts)
C) Overhead = 0.98 + 40.98(Setup hours) + 4.865(# of parts)
D) Overhead = 1,000 + 25(Setup hours)

Question

Figure 3-8
The following computer printout estimated overhead costs using multiple regression:
    During the year the company used 1,000 setup hours and 500 parts.
-Refer to Figure 3-8. The model being measured is
A) Overhead = 1,000 + 25(Setup hours) + 100(# of parts) 
B) Overhead = 510 + 0.305(Setup hours) + 10.527(# of parts) 
C) Overhead = 0.98 + 40.98(Setup hours) + 4.865(# of parts) 
D) Overhead = 1,000 + 25(Setup hours)

Quizplus · Accepted Answer

The model being measured includes both setup hours and the number of parts, which matches choice A.

Figure 3-8 The Following Computer Printout Estimated Overhead Costs Using Multiple Regression