Unformatted text preview: r if 16,000 trainer hours are incurred and the stable has 400 horses to be training trained, based on the best cost driver? A) $99,929.09 B) $350,756.50 C) $335,313.32 D) $13,844,444.50 Answer: B Explanation: B) y
Diff: 3 T A AACSB: Analytical skills 158) A major concern that arises with multiple regression is multicollinearity, which exists when: A) in simple regression, when the dependent variable is not normally distributed B) in simple regression, when the R2 statistic is low C) in multiple regression, when the R2 statistic is low D) in multiple regression, when two or more independent variables are correlated with one another Answer: D Diff: 2 Terms: multiple regression, multicollinearity Objective: A AACSB: Analytical skills 159) In multiple regression, when two or more independent variables are correlated with one another, the situation is known as: A) heteroscedastici ty B) homoscedasticit y C) multicollinearit y D) autocorrelation Answer: C Diff: 2 Terms: multiple regression, multicollinearity Objective: A AACSB: Reflective thinking 160) Write a conditions. Use y for estimated costs and X for activity ofthe cost driver. linear cost function a. Direct manufacturing labor is $10 per hour.
equation b. Direct materials cost $9.20 per cubic yard.
for each c. Utilities have a minimum charge of $1,000, plus a charge of $0.05 per kilowatthour.
of the d. Machine operating costs include $200,000 of machine depreciation per year, plus $75 of utility costs for each day the following machinery is in operation. Answer: a. y = $10X
b. y = $9.20X
c. y = $1,000 +
$0.05X
d. y = $200,000 +
$75X Diff: 1 Terms: linear cost function Objective: 1 AACSB: Analytical skills 161) Write a conditions. Use y for estimated costs and x for activity of the cost driver. linear cost function a. Direct materials cost is $.75 per pound.
equation b. Direct labor cost is $16.75 per hour.
for each c. Auto rental has a fixed fee of $75.00 per day plus $.50 per mile driven.
of the d. Machine operating costs include $350 of maintenance per month, and $5.00 of coolant usage costs for each day the following mac...
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 Spring '08
 BROWN
 AACSB, Reflective thinking

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