The cost accountants at Driftwood Manufacturing performed a regression analysis on total overhead costs and direct labor hours for the past 36 months and reported the following results: Regression Variable Value Slope Intercept $45. 27 $610.89 Correlation Coefficient 0.902 What is the estimated overhead cost if 215 direct labor hours are expected to be used in the upcoming period? (rounded to the nearest whole dollar)

The cost accountants at Driftwood Manufacturing performed a regression analysis on total overhead costs and direct labor hours for the past 36 months and reported the following results: Regression Variable Value Slope Intercept $45. 27 $610.89 Correlation Coefficient 0.902 What is the estimated overhead cost if 215 direct labor hours are expected to be used in the upcoming period? (rounded to the nearest whole dollar)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 19BEA: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That...

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What is the estimated overhead cost?
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The past 36 months and reported the following results
Step by Step Solution
For a simple regression analysis model that is used to allocate factory overhead, an internal auditor finds that the intersection of the line of best fit for the overhead allocation with the y-axis is $14,000. The slope of the line is 0.2. The independent variable, factory wages, amounts to $810,000 for the month. What is the estimated amount of factory overhead to be allocated for the month? Multiple Choice $289,400. $162.000. $68,000. $88,000.
General accounting
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