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Author Question: Dandy Manufacturing Company uses two different independent variables (machine-hours and number of ... (Read 70 times)

V@ndy87

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on: Mar 6, 2021
Dandy Manufacturing Company uses two different independent variables (machine-hours and number of packages) in two different equations to evaluate costs of the packaging department. The most recent results of the two regressions are as follows: 

Machine-hours:
VariableCoefficientStandard Errort-Value
Constant$748.30$341.202.19
Independent Variable$52.90$35.201.50 
 r2 = 0.33 

Number of packages:
VariableCoefficientStandard Errort-Value
Constant$242.90$75.043.24
Independent Variable$5.60$2.002.80 
 r2 = 0.73 

Required: 
a.What are the estimating equations for each cost driver?
b.Which cost driver is best and why? 
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by V@ndy87 on Mar 6, 2021

chevyboi1976

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Reply #1 on: Mar 6, 2021
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V@ndy87

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

scottmt

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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