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Dandy Manufacturing Company Uses Two Different Independent Variables (Machine-Hours and Number

Question 56

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

Correct Answer:

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a.Machine-hoursy = $748.30 + $52.90X
Num...

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