16 The cost accountants at the Miller Company regressed tota

16. The cost accountants at the Miller Company regressed total overhead costs and direct labor hours for the 50-months and reported the following results: Slope Intercept Correlation Coefficient $72.48 $392.41 897 is the estimated overhead cost, rounded to the nearest whole dollar, if 431 direct labor hours are What expected to be used in the upcoming period?

Solution

Slope 72.48 Intercept 392.41 Correlation coefficient 0.897 Direct Labour hours 431 Estimated overheads 31631.29 (392.41+ 72.48*431) Therefore, Estimated OH is $ 31631.29