Question 14 XYZ Company uses the formula y = a + bX to predict and...
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Question 14 XYZ Company uses the formula y = a + bX to predict and analyze overhead costs. In the previous year, XYZ used $1,750 per month for the a factor and $0.35 for the b factor in applying overhead. XYZ has used direct labour hours in the past, but is wondering whether overhead behaviour is more closely associated with machine hours. The following data have been generated for consideration Month Machine Hours Overhead Costs 431 477 406 490 504 418 $2,817 $2,972 $2,409 $2,947 $2,780 $2,654 4 Determine the fixed and variable values, using machine hours. (Round variable cost to 2 decimal places, e.g. 15.25 and fixed cost to 0 decimal places, e.g. 525) Fixed Cost Variable Cost per machine hour LINK TO TEXT If it is expected that the company will incur 958 machine hours in the coming month, predict that month's overhead costs. (Round answer to 0 decimal places, e.g.525) Month's overhead costs
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