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Managerial Accounting

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Dependent and Independent Variables

MGRACT-TCXLEZ

Springfield Company believes manufacturing overhead cost to be a mixed cost that is driven by direct labor hours. In this situation, which of the following is true?

A

Manufacturing overhead cost should be considered to be the dependent variable in a regression analysis.

B

Manufacturing overhead cost should be considered to be the independent variable in a regression analysis.

C

Manufacturing overhead costs and direct labor hours are both considered dependent variables.

D

Manufacturing overhead costs and direct labor hours are both considered independent variables.