Bradford Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost: C = $80,000+ $12M Where: C = monthly manufacturing overhead cost, and M = machine hours The standard error of estimate of the regression is $6,000 The standard time required to manufacture one six-unit case of Bradford's single product is two machine hours Bradford applies manufacturing overhead to production on the basis of machine hours, and its normal annual production is 50,000 cases Bradford's estimated variable manufacturing overhead cost for a month in which scheduled production is 5,000 cases would be: A. $200,000 B. $140,000 C. $80,000 D. $120,000 E. Some amount other than those given above
Bradford Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost: C = $80,000+ $12M Where: C = monthly manufacturing overhead cost, and M = machine hours The standard error of estimate of the regression is $6,000 The standard time required to manufacture one six-unit case of Bradford's single product is two machine hours Bradford applies manufacturing overhead to production on the basis of machine hours, and its normal annual production is 50,000 cases Bradford's estimated variable manufacturing overhead cost for a month in which scheduled production is 5,000 cases would be: A. $200,000 B. $140,000 C. $80,000 D. $120,000 E. Some amount other than those given above
Bradford Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost: C = $80,000+ $12M Where: C = monthly manufacturing overhead cost, and M = machine hours The standard error of estimate of the regression is $6,000 The standard time required to manufacture one six-unit case of Bradford's single product is two machine hours Bradford applies manufacturing overhead to production on the basis of machine hours, and its normal annual production is 50,000 cases Bradford's estimated variable manufacturing overhead cost for a month in which scheduled production is 5,000 cases would be: A. $200,000 B. $140,000 C. $80,000 D. $120,000 E. Some amount other than those given above
Transcribed Image Text:Bradford Company derived the following cost relationship from a
regression analysis of its monthly manufacturing overhead cost:
C = $80,000+ $12M
Where:
C = monthly manufacturing overhead cost, and
M = machine hours
The standard error of estimate of the regression is $6,000 The
standard time required to manufacture one six-unit case of
Bradford's single product is two machine hours Bradford applies
manufacturing overhead to production on the basis of machine
hours, and its normal annual production is 50,000 cases
Bradford's estimated variable manufacturing overhead cost for a
month in which scheduled production is 5,000 cases would be:
A. $200,000
B. $140,000
C. $80,000
D. $120,000
E. Some amount other than those given above
Definition Definition Structural system an enterprise uses to collect, store, report, retrieve, and process financial data. Accounting information systems are used by business analysts, auditors, accountants, and consultants for accurate and efficient access to financial data.
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