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. For budgeting and controlling purposes, the following data for the past 12 months of operations were presented to the controller of Selyu Company: Sum of direct labor hours Sum of the mixed costs Sum of the hours x costs Sum of mixed costs squared Sum of direct labor hours squared 840 9,000 655,000 50,800 63,800 The company uses least squares method in segregating fixed and variable costs. How much is the variable cost per hour? A. 3.125 C. 3.75 B. 3.50 D. 5.00 E. 10.00

. For budgeting and controlling purposes, the following data for the past 12 months of operations were presented to the controller of Selyu Company: Sum of direct labor hours Sum of the mixed costs Sum of the hours x costs Sum of mixed costs squared Sum of direct labor hours squared 840 9,000 655,000 50,800 63,800 The company uses least squares method in segregating fixed and variable costs. How much is the variable cost per hour? A. 3.125 C. 3.75 B. 3.50 D. 5.00 E. 10.00

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...
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60. For budgeting and controlling purposes, the following data for the past 12 months of operations were presented to the controller of Selyu Company: Sum of direct labor hours Sum of the mixed costs Sum of the hours x costs Sum of mixed costs squared Sum of direct labor hours squared 840 9,000 655,000 50,800 63,800 The company uses least squares method in segregating fixed and variable costs. How much is the variable cost per hour? A. 3.125 C. 3.75 B. 3.50 D. 5.00 E. 10.00 5
Transcribed Image Text:60. For budgeting and controlling purposes, the following data for the past 12 months of operations were presented to the controller of Selyu Company: Sum of direct labor hours Sum of the mixed costs Sum of the hours x costs Sum of mixed costs squared Sum of direct labor hours squared 840 9,000 655,000 50,800 63,800 The company uses least squares method in segregating fixed and variable costs. How much is the variable cost per hour? A. 3.125 C. 3.75 B. 3.50 D. 5.00 E. 10.00 5
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