Corrine Corporation, which uses least-squares regression analysis, has derived the following regression equation for estimates of manufacturing overhead: Y = 495,000 + 5.65X.Which of the following statements is true if the primary cost driver is machine hours?
A)Total manufacturing overhead is represented by the variable "X."
B)The company anticipates $495,000 of ﬁxed manufacturing overhead.
C)"X" is commonly known as the dependent variable.
D)"X" represents the number of machine hours.
E)The company anticipates $495,000 of ﬁxed manufacturing overhead and "X" represents the number of machine hours.

Question

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The Answer of Corrine Corporation, which uses least-squares regression analysis, has derived the following regression equation for estimates of manufacturing overhead: Y = 495,000 + 5.65X.Which of the following statements is true if the primary cost driver is machine hours?
A)Total manufacturing overhead is represented by the variable "X."
B)The company anticipates $495,000 of ﬁxed manufacturing overhead.
C)"X" is commonly known as the dependent variable.
D)"X" represents the number of machine hours.
E)The company anticipates $495,000 of ﬁxed manufacturing overhead and "X" represents the number of machine hours.

Corrine Corporation, Which Uses Least-Squares Regression Analysis, Has Derived the Following