Smith Products Has Determined That the Number of Machine Hours

Multiple Choice

Smith Products has determined that the number of machine hours worked (MH) drives the amount of manufacturing overhead incurred (MOH) . On the basis of this relationship, a staff analyst has constructed the following regression equation: MOH = $240,000 + 8MH. Which of the choices correctly depicts the nature of Smith's variables? $\begin{array} { | l | l | l | l | } \hline & \text { Dependent } & & \text { Independent } \\\hline 1 & \mathrm { MOH } & & \mathrm { MOH } \\\hline 2 & \mathrm { MOH } & & \mathrm { MH } \\\hline 3 & \mathrm { MH } & & \mathrm { MOH } \\\hline 4 & \mathrm { MH } & & \mathrm { MH } \\\hline 5 & 8 & & 240.000 \\\hline\end{array}$

A) 1
B) 2
C) 3
D) 4
E) 5