[The Following Information Applies to the Questions Displayed Below

question 82

Multiple Choice

[The following information applies to the questions displayed below.]
The Starbright Corporation has compiled the following data.The company intends to use this information to develop standard costs per unit for its single product:
Direct materials = $50 per ton
Direct labor = $12.75 per hour
Variable manufacturing overhead = $5 per direct labor hour
Fixed manufacturing overhead = $18,700
Expected production = 1,700 units
Each unit of the company's single product requires 2.5 tons of direct materials and 22.5 hours to manufacture.
-What is the standard cost for direct labor per unit for Starbright's single product? (Round your answer to the nearest dollar. )

• A)$100 per unit
• B)$287 per unit
• C)$180 per unit
• D)$285 per unit

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Definitions:

Explanatory Variables

Variables in a statistical model that are used to explain changes or differences in a response variable.

T-Statistic

A value used in hypothesis testing, calculated as the difference between an observed sample mean and the population mean divided by the standard error of the mean.

Coefficient on Education

A statistical measure in regression that represents the change in the dependent variable resulting from a one-unit change in the level of education, all else being equal.

Significantly Different

A term used in statistics to indicate that the observed differences between groups or variables are too large to be attributed to chance alone, according to a predefined level of significance.