Saturday, August 13, 2011

Craig’s Cola was to manufacture 1,000 cases of cola next week

ACCOUNTING

Multiple Choice

Craig’s Cola was to manufacture 1,000 cases of cola next week. The accountant provided the following analysis of total manufacturing costs.



Variable Coefficient Standard Error t-Value

Constant 100 71.94 1.39

Independent variable 200 91.74 2.18



r2 = 0.82



What is the estimated cost of producing the 1,000 cases of cola?

a. $200,100

b. $142,071

c. $100,200

d. $9,000

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