Runge Company Purchased Machinery on January 1 at a List

question 67

Multiple Choice

Runge Company purchased machinery on January 1 at a list price of $300,000, with credit terms 2/10, n/30.Payment was made within the discount period.Runge paid $15,000 sales tax on the machinery and paid installation charges of $5,300.Prior to installation, Runge paid $12,000 to pour a concrete slab on which to place the machinery.What is the total cost of the new machinery?

• A)$314,300
• B)$326,300
• C)$332,300
• D)$309,000

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Definitions:

ANOVA

Stands for Analysis of Variance, a statistical method used to test differences between two or more means to see if they are statistically significant.

Analysis of Variance

A statistical method used to compare the means of three or more samples to see if at least one is significantly different from the others.

Path Analysis

A statistical technique used in social science to study the direct and indirect relationships between variables in a model.

Dependent Variable

In an experiment or study, the variable being tested and measured, expected to change as a result of variations in the independent variable.