alcom Enterprises is planning to introduce a new product that will sell for $145 a unit Manufacturing cost estimates for 25.000 units for the first year of production are: Direct materials $1.500.000. Direct labor $900.000 (based on $18 per hour 50,000 hours). though overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent variable Independent variable Intercept Coefficient on independent variable Coefficient of correlation R² Multiple Choice ased on this information, how much is the variable manufacturing cost per unit, using the variable overhead estimated by the regression (assuming that direct materials and direct labor are variable costs)? OO OO $106 $97 $88 Factory overhead costs Direct labor hours $130,000 $83 $ 5.00 0.941 0.834
alcom Enterprises is planning to introduce a new product that will sell for $145 a unit Manufacturing cost estimates for 25.000 units for the first year of production are: Direct materials $1.500.000. Direct labor $900.000 (based on $18 per hour 50,000 hours). though overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent variable Independent variable Intercept Coefficient on independent variable Coefficient of correlation R² Multiple Choice ased on this information, how much is the variable manufacturing cost per unit, using the variable overhead estimated by the regression (assuming that direct materials and direct labor are variable costs)? OO OO $106 $97 $88 Factory overhead costs Direct labor hours $130,000 $83 $ 5.00 0.941 0.834
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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