Use the Following Information for Questions

question 42

Multiple Choice

Use the following information for questions
Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively.
-The standard direct materials price per pound is

• A) $1.96.
• B) $2.00.
• C) $2.13
• D) $2.17

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Definitions:

Intercept Term

A constant term in a regression equation that represents the expected value of the dependent variable when all independent variables are zero.

Coefficient

A coefficient is a numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

First-Order Regression

A linear regression analysis that involves a single independent variable to predict the outcome of a dependent variable.

Unit Increase

A one-unit increment in the value of an independent variable in a mathematical function or experiment.