... relationship exists d management should cut costs Answer: a Difficulty: Chapter 10 Page 19 104 The smaller the residual term a the stronger the relationship between the cost driver and costs b the weaker ... total labor costs at Carroll Company when 10, 000 labor-hours are used? a $17,000 b $41,000 c $21,167 d $27,000 Answer: b Difficulty: y = $17,000 + ($2.40 x 10, 000) = $41,000 Chapter 10 Page 15 ... between actual costs and predicted costs the better the goodness of fit Answer: True Difficulty: Chapter 10 Page Objective: 26 Choosing an economically plausible cost driver for indirect costs is fairly...