(Appendix 5A) The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost. Shown below are machine-hours and total overhead costs for the past six months:
Assume that the relevant range includes all of the activity levels mentioned in this problem.
-What is Casablanca's independent variable?
A) the year
B) the machine hours
C) the total overhead cost
D) the relevant range

Question

(Appendix 5A) The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost. Shown below are machine-hours and total overhead costs for the past six months:
  Assume that the relevant range includes all of the activity levels mentioned in this problem.
-What is Casablanca's independent variable?
A) the year 
B) the machine hours 
C) the total overhead cost 
D) the relevant range

Quizplus · Accepted Answer

The independent variable is the measure of activity which is machine-hours in this case.

(Appendix 5A) the Management of Casablanca Manufacturing Corporation Believes That