Direct Direct Direct Materials Labour Cost Labour Hours

question 44

Multiple Choice

Direct Direct Direct Materials Labour Cost Labour Hours
Job 200 $ 500 $800 40
Job 201 350 200 10
Job 202 1,000 600 30
Franks Fabricating uses job costing and applies overhead using a normal costing system and uses direct labour cost as the allocation base. This period's estimated overhead cost is $100,000 and estimated direct labour cost of $50,000 and 2,500 direct labour hours.
What is the total manufacturing cost of Job 201?

• A)$550
• B)$950
• C)$850
• D)$1,500

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Definitions:

Simple Linear Regression

A statistical method to model the relationship between two variables by fitting a linear equation to observed data.

Statistically Significant

A term used to indicate that the probability of the observed data, or something more extreme, happening by chance is low under the null hypothesis.

Stochastic Relationship

A relationship between variables or processes that involves randomness, implying that predictions can only be made probabilistically.

Regression Analysis

A statistical technique for modeling and analyzing the relationships between a dependent variable and one or more independent variables.