Ben and Mildred's Stables Used Two Different Independent Variables (Trainer

question 84

Multiple Choice

Ben and Mildred's Stables used two different independent variables (trainer hours and number of horses) in two different equations to evaluate the cost of training horses. The most recent results of the two regressions are as follows:

What is the estimated total cost for the coming year if 14,700 trainer hours are incurred and the stable has 310 horses to be trained, based upon the best cost driver?

• A) $7,992.85
• B) $300,276.50
• C) $332,343.45
• D) $13,995,671.20

Understand the concept and components of standard direct materials and labor costs, including calculations and variances.

Comprehend the significance of allowances for waste, spoilage, and other factors in setting standards for materials and labor.

Identify and calculate variances in direct materials (quantity and price) and direct labor (efficiency and rate).

Grasp the role of freight-in, receiving, handling costs, and discounts in calculating the standard cost of direct materials.

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Definitions:

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the owner's claim against the company's assets.

Cost Method

An accounting method used for investments, where the investment is recorded at cost and adjustments are only made for impairments or additional investments, without recognizing unrealized gains or losses.

Appraisal Method

An evaluation process to determine the value of an asset, often used for real estate and investments, based on various criteria.