Business, 02.01.2020 22:31, emalvidrez5205

Roger co. implemented activity-based costing in the current year. to select the appropriate driver for cost pool a, roger performed regression analyses for two independent variables, driver 1 and driver 2, using monthly operating data. the monthly levels of cost pool a were the dependent variables in both regressions. output results from the regression analyses were as follows:

driver 1 driver 2
r squared 0.46 0.80
intercept $551.00 $970.00
x variable (slope) $ 0.55 $ 0.33

at the budgeted production level for next month, the levels of driver 1 and driver 2 are expected to be 5,880 and 7,000, respectively. based on this information, what is the budgeted amount for cost pool a for next month?

a. $2,624
b. $3,280
c. $3,464
d. $3,785

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Roger co. implemented activity-based costing in the current year. to select the appropriate driver f...