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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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9 years ago
Schotte 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:
   Variable   Coefficient   Standard Error   t-Value
   Constant   $748.30   $341.20   2.19
   Independent Variable   $52.90   $35.20   1.50

   r2 = 0.33

Number of packages:
   Variable   Coefficient   Standard Error   t-Value
   Constant   $242.90   $75.04   3.24
   Independent Variable   $5.60   $2.00   2.80

   r2 = 0.73

Required:
a.   What are the estimating equations for each cost driver?
b.   Which cost driver is best and why?
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
Very happy to know people like you still exist. Really, without your help, I wouldn't understand the content one bit.
wrote...
#3
9 years ago
I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.
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