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XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression...

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XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$150,000 + $10XDLH: R-square = 0.11) [Y= $190,000 + $5xMhr: R-square = 0.95); [Y=200,000+20; R-square=0.52). Based on this information, which cost driver do you recommend? Select one: a. Machine hours (Mhr) O b. Direct labor hours (DLH) O c. None of them O d. All cost drivers are the same O e Quantity produced (Q) At the breakeven point a. Select one: a. Sales will be equal to variable costs plus fixed costs O b. Sales will be equal to fixed costs plus target profit O c. Fixed costs will be equal to variable costs d. Sales will be equal to variable costs plus target profit e. Fixed costs will be equal contribution margin minus vanable costs

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