Roger Co. implemented activity-based costing in the current year. To select the appropriate driver for Cost Pool A, Roger performed regression analyses for two independent variables, Driver 1 and Driver 2, using monthly operating data. The monthly levels of Cost Pool A were the dependent variables in both regressions. Output results from the regression analyses were as follows: OB. $2,624 Driver 1 R squared Intercept X variable (slope) $0.55 At the budgeted production level for next month, the levels of Driver 1 and Driver 2 are expected to be 5,880 and 7,000, respectively. Based on this information, what is the budgeted amount for Cost Pool A for next month? OA. $3,280 O C. $3,464 O D. $3,785 0.46 Driver 2 $551.00 0.80 $970.00 $0.33

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Roger Co. implemented activity-based costing in the current year. To select the appropriate driver for Cost Pool A, Roger performed regression analyses for two
independent variables, Driver 1 and Driver 2, using monthly operating data. The monthly levels of Cost Pool A were the dependent variables in both regressions.
Output results from the regression analyses were as follows:
Driver 1
R squared
Intercept
X variable (slope)
At the budgeted production level for next month, the levels of Driver 1 and Driver 2 are expected to be 5,880 and 7,000, respectively. Based on this information,
what is the budgeted amount for Cost Pool A for next month?
O A. $3,280
OB. $2,624
O C. $3,464
O D. $3,785
0.46
$551.00
Driver 2
$0.55
0.80
$970.00
$0.33
Transcribed Image Text:Roger Co. implemented activity-based costing in the current year. To select the appropriate driver for Cost Pool A, Roger performed regression analyses for two independent variables, Driver 1 and Driver 2, using monthly operating data. The monthly levels of Cost Pool A were the dependent variables in both regressions. Output results from the regression analyses were as follows: Driver 1 R squared Intercept X variable (slope) At the budgeted production level for next month, the levels of Driver 1 and Driver 2 are expected to be 5,880 and 7,000, respectively. Based on this information, what is the budgeted amount for Cost Pool A for next month? O A. $3,280 OB. $2,624 O C. $3,464 O D. $3,785 0.46 $551.00 Driver 2 $0.55 0.80 $970.00 $0.33
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