CMA Study Group

A single-product company uses regression to predict one of its factory overhead costs with
materials used as the independent variable. The regression equation is: Y = 542,000 +
0.0000253X. Based on R², management has determined that this model captures a
significant portion of the relationship. 

The behavior of this factory overhead cost with respect to units of finished goods
produced is  

a.    fixed.
b. semivariable.
c.    variable.
d. not determinable from the provided information. 

-------------------------------------------
Ramy Sayed
Senior Accountant
Cairo
Egypt
-------------------------------------------

A single-product company uses regression to predict one of its factory overhead costs with
materials used as the independent variable. The regression equation is: Y = 542,000 +
0.0000253X. Based on R², management has determined that this model captures a
significant portion of the relationship. 

The behavior of this factory overhead cost with respect to units of finished goods
produced is  

a.    fixed.
b. semivariable.
c.    variable.
d. not determinable from the provided information. 

-------------------------------------------
Ramy Sayed
Senior Accountant
Cairo
Egypt
-------------------------------------------

A single-product company uses regression to predict one of its factory overhead costs with
materials used as the independent variable. The regression equation is: Y = 542,000 +
0.0000253X. Based on R², management has determined that this model captures a
significant portion of the relationship. 

The behavior of this factory overhead cost with respect to units of finished goods
produced is  

a.    fixed.
b. semivariable.
c.    variable.
d. not determinable from the provided information. 

-------------------------------------------
Ramy Sayed
Senior Accountant
Cairo
Egypt
-------------------------------------------

A single-product company uses regression to predict one of its factory overhead costs with
materials used as the independent variable. The regression equation is: Y = 542,000 +
0.0000253X. Based on R², management has determined that this model captures a
significant portion of the relationship. 

The behavior of this factory overhead cost with respect to units of finished goods
produced is  

a.    fixed.
b. semivariable.
c.    variable.
d. not determinable from the provided information. 

-------------------------------------------
Ramy Sayed
Senior Accountant
Cairo
Egypt
-------------------------------------------