# Cost Accounting Questions and 3 Cost Analysis Problems

1. Cost of goods manufactured during a period is obtained by taking the total manufacturing costs incurred during the period, adding, and subtracting the following inventories:

Adding Subtracting

a. Beginning finished goods inventory Ending finished goods inventory

b. Beginning work in process inventory Ending finished goods inventory

c. Beginning raw materials inventory Ending work in process inventory

d. Beginning work in process inventory Ending work in process inventory

2. Cost of goods sold is equal to

a. total manufacturing costs plus beginning work in process less ending work in process.

b. cost of goods sold plus beginning work in process less ending work in process.

c. total manufacturing costs plus ending work in process less beginning work in process.

d. cost of goods manufactured plus beginning finished goods less ending finished goods.

3. Inventory accounts for a manufacturer consist of

a. direct materials, work in process, and finished goods.

b. direct labor, work in process, and finished goods.

c. manufacturing overhead, direct materials, and direct labor.

d. work in process, direct labor, and manufacturing overhead.

4. In a process cost system, equivalent units of production are the

a. work done on physical units expressed in fully completed units.

b. units that are transferred to the next processing department.

c. units completed and transferred to finished goods.

d. units that are incomplete at the end of a period.

Use the following information for questions 5 and 6.

In the month of November, a department had 500 units in the beginning work in process inventory that were 60% complete. These units had $8,000 of materials cost and $6,000 of conversion costs. Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. During November, 10,000 units were completed and transferred to the finished goods inventory and there were 2,000 units that were 25% complete in the ending work in process inventory on April 30. During November, manufacturing costs charged to the department were: Materials $184,000; Conversion costs $204,000.

5. The cost assigned to the units transferred to finished goods during November was

a. $360,000.

b. $362,000.

c. $376,000.

d. $358,000.

6. The cost assigned to the units in the ending work in process inventory on November 30 was

a. $72,000.

b. $42,000.

c. $32,000.

d. $58,000.

7. An appropriate cost driver for ordering and receiving materials cost is the

a. direct labor hours.

b. machine hours.

c. number of parts.

d. number of purchases orders.

8. Benefits of activity-based costing include all of the following except

a. more accurate product costing.

b. fewer cost pools used to assign overhead costs to products.

c. enhanced control over overhead costs.

d. better management decisions.

9. An example of a value-added activity in a manufacturing operation is

a. machine repair.

b. inventory control.

c. engineering design.

d. building maintenance.

10. Assigning manufacturing costs to work in process results in credits to all of the following accounts except

a. Factory Labor.

b. Manufacturing Overhead.

c. Raw Materials Inventory.

d. Work in Process Inventory.

11. Juniper, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Juniper's break even point?

a. 4,600 units

b. $25,600

c. 6,200 units

d. 2,133 units

12. Homer Company's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?

a. $18,000

b. $6,000

c. $12,000

d . $12,000

13. Twix Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should Twix push to customers?

a. Beer

b. Wine

c. Selling either results in the same additional income for the company

d. It should sell an equal quantity of both.

14. Monroe Company manufactures a product with a unit variable cost of $42 and a unit sales price of $75. Fixed manufacturing costs were $80,000 when 10,000 units were produced and sold, equating to $8 per unit. The company has a one-time opportunity to sell an additional 1,000 units at $55 each in an international market which would not affect its present sales. The company has sufficient capacity to produce the additional units. How much is the relevant income effect of accepting the special order?

a. $42,000

b. $5,000

c. $50,000

d. $13,000

15. Beavers, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $16, while the cost of assembling each unit is estimated at $17. Unassembled units can be sold for $55, while assembled units could be sold for $71 per unit. What decision should Beavers make?

a. Sell before assembly, the company will save $1 per unit.

b. Sell before assembly, the company will save $15 per unit.

c. Process further, the company will save $1 per unit.

d. Process further, the company will save $16 per unit.

16. Lion Company sells office chairs with a selling price of $25 and a contribution margin per unit of $15. It takes 3 machine hours to produce one chair. How much is the contribution margin per unit of limited resource?

a. $5

b. $3.33

c. $45

d. $10

Use the following information for items 17 -19.

Dustin Company sells its product for $40 per unit. During 2005, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $10, direct labor $6, and variable overhead $2. Fixed costs are: $480,000 manufacturing overhead, and $60,000 selling and administrative expenses.

17. The per unit manufacturing cost under absorption costing is:

a. $16.

b. $18.

c. $26.

d. $27.

18. The per unit manufacturing cost under variable costing is:

a. $16.

b. $18.

c. $26.

d. $27.

19. Cost of goods sold under absorption costing is:

a. $ 900,000.

b. $1,080,000.

c. $1,300,000.

d. $1,560,000.

20. A company developed the following per-unit standards for its product: 2 pounds of direct materials at $6 per pound. Last month, 2,000 pounds of direct materials were purchased for $11,400. The direct materials price variance for last month was

a. $11,400 favorable.

b. $600 favorable.

c. $300 favorable.

d. $600 unfavorable.

21. The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200 gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was

a. $3,200 favorable.

b. $2,400 favorable.

c. $3,200 unfavorable.

d. $5,600 unfavorable.

22. The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in producing 2,400 units, the actual direct labor cost was $51,200 for 4,000 direct labor hours worked, the total direct labor variance is

a. $1,920 unfavorable.

b. $6,400 favorable.

c. $4,000 unfavorable.

d. $6,400 unfavorable.

23. The standard rate of pay is $5 per direct labor hour. If the actual direct labor payroll was $19,600 for 4,000 direct labor hours worked, the direct labor price (rate) variance is

a. $800 unfavorable.

b. $800 favorable.

c. $1,000 unfavorable.

d. $400 favorable.

24. The standard number of hours that should have been worked for the output attained is 8,000 direct labor hours and the actual number of direct labor hours worked was 8,400. If the direct labor price variance was $8,400 unfavorable, and the standard rate of pay was $18 per direct labor hour, what was the actual rate of pay for direct labor?

a. $17.00 per direct labor hour

b. $15.00 per direct labor hour

c. $19.00 per direct labor hour

d. $18.00 per direct labor hour

Problem 1 - Activity-Based Costing (16 points)

Tuttle Manufacturing Company manufactures two products: radiators and gas tanks. During June, 200 radiators and 400 gas tanks were produced and overhead costs of $54,000 were incurred. The following information related to overhead costs was available:

Activity Cost Driver Total Cost

Materials handling Number of requisitions $24,000

Machine setups Number of setups 18,000

Quality inspections Number of inspections 20,000

The cost driver volume for each product was as follows:

Cost Driver Radiators Gas Tanks Total

Number of requisitions 300 500 800

Number of setups 140 220 360

Number of inspections 190 310 500

Instructions

a) Compute the overhead rate for each activity.

b) Assign the manufacturing overhead costs for June to the two products using activity-based costing.

Problem 2 - Cost-Volume-Profit (20 points)

Reavis Company prepared the following income statement for 2005:

REAVIS COMPANY

Income Statement

For the Year Ended December 31, 2005

Sales (20,000 units) $600,000

Variable expenses 360,000

Contribution margin 240,000

Fixed expenses 180,000

Net income $ 60,000

Instructions

Answer the following independent questions and show computations to support your answers.

1) What is the company's break-even point in units?

2) How many more units would the company have had to sell to earn net income of $90,000 in 2005?

3) If the company expects a 25% increase in sales volume in 2006, what would be the expected net income in 2006?

4) How much sales dollars would the company have to generate in order to earn a target net income of $110,000 in 2006?

Problem 3 - Standard Costing ( 16 points)

Beachwalk Company uses a standard cost accounting system. During January, 2006, the company reported the following manufacturing variances:

Material price variance $2,000 F

Material quantity variance 2,400 U

Labor price variance 800 U

Labor quantity variance 1,200 U

Overhead controllable 500 F

Overhead volume 3,000 U

In addition, 15,000 units of product were sold at $18 per unit. Each unit sold had a standard cost of $12. Selling and administrative expenses for the month were $10,000.

Instructions

Prepare an income statement for management for the month ending January 31, 2006.

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#### Solution Preview

Please see the attached file. All answers/explanations in blue

1. Cost of goods manufactured during a period is obtained by taking the total manufacturing costs incurred during the period, adding, and subtracting the following inventories:

Adding Subtracting

a. Beginning finished goods inventory Ending finished goods inventory

b. Beginning work in process inventory Ending finished goods inventory

c. Beginning raw materials inventory Ending work in process inventory

d. Beginning work in process inventory Ending work in process inventory

This is correct

2. Cost of goods sold is equal to

a. total manufacturing costs plus beginning work in process less ending work in process.

b. cost of goods sold plus beginning work in process less ending work in process.

c. total manufacturing costs plus ending work in process less beginning work in process.

d. cost of goods manufactured plus beginning finished goods less ending finished goods.

Cost of goods sold = Opening Finished goods inventory + cost of goods manufactured - ending finished goods inventory

3. Inventory accounts for a manufacturer consist of

a. direct materials, work in process, and finished goods.

b. direct labor, work in process, and finished goods.

c. manufacturing overhead, direct materials, and direct labor.

d. work in process, direct labor, and manufacturing overhead.

4. In a process cost system, equivalent units of production are the

a. work done on physical units expressed in fully completed units.

b. units that are transferred to the next processing department.

c. units completed and transferred to finished goods.

d. units that are incomplete at the end of a period.

Use the following information for questions 5 and 6.

In the month of November, a department had 500 units in the beginning work in process inventory that were 60% complete. These units had $8,000 of materials cost and $6,000 of conversion costs. Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. During November, 10,000 units were completed and transferred to the finished goods inventory and there were 2,000 units that were 25% complete in the ending work in process inventory on April 30. During November, manufacturing costs charged to the department were: Materials $184,000; Conversion costs $204,000.

Please see the production cost report below

Production Cost Report - Weighted Average Method

For the Month of November

Quantity Schedule

Quantities Physical Units Equivalent Units

Material Conversion

Units to be accounted for

Work in Process, Beginning 500

Started into Production 11,500

Total Units 12,000

Units Accounted for

Transferred Out 10,000 10,000 10,000

WIP, Ending (100% for material and 25% for conversion) 2,000 2,000 500

Total Units 12,000 12,000 10,500

Cost per Equivalent Unit

Unit Costs Material Conversion Total

WIP 8,000 6,000 14,000

Costs in Month 184,000 204,000 388,000

Total Cost 192,000 210,000 402,000

Equivalent Units 12,000 10,500

Unit Costs 16.00 20.00 36.00

Cost Reconciliation Schedule

Costs to be accounted for

WIP, Beginning 14,000

Started into Production 388,000

Total Costs 402,000

Costs Accounted for

Transferred out (10,000X36) 360,000

Work in process, Ending

Materials (2,000 X $16) 32,000

Conversion costs (500X 20) 10,000

Total WIP 42,000

Total costs 402,000

5. The cost assigned to the units transferred to finished goods during November was

a. $360,000.

b. $362,000.

c. $376,000.

d. $358,000.

6. The cost assigned to the units in the ending work in process inventory on November 30 was

a. $72,000.

b. $42,000.

c. $32,000.

d. $58,000.

7. An appropriate cost driver for ordering and receiving materials cost is the

a. direct labor hours.

b. machine ...

#### Solution Summary

The solution explains various multiple choice questions relating to cost accounting

24 Assorted Statistic Problems

(See attached file for full problem description)

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Question 1

Lilo is creating an experiment to determine mean differences in weight loss (ratio level variable) of obese children as a result of participation in different weight loss programs (nominal variable with three levels: Atkins, South Beach, and Weight Watchers). Although the children will be randomly assigned to the weight loss program (i.e., the treatment), Lilo believes that the child's initial weight may make a difference in how much weight the child loses. Thus she would like to control for initial weight when running the analysis. Which statistical procedure is most appropriate?

a. analysis of covariance

b. hierarichical (or nested) ANOVA

c. multiple linear regression

d. simple linear regression

Question 2

Gracie is interested in predicting the amount of water the dogs at the Humane Society consume per day (measured in ounces, ratio level variable) by their size of their paws (measured in inches, ratio level variable). Which statistical procedure is most appropriate?

a. analysis of covariance

b. hierarichical (or nested) ANOVA

c. multiple linear regression

d. simple linear regression

Question 3

The research office at a large school district is interested in examining the effect of different formats of professional development on teachers' average implementation of what was learned in the professional development. Approximately 500 teachers from 20 different schools were assigned by convenience to receive professional development via the following formats: 1) face-to-face; 2) some face-to-face and some online; 3) totally online. The researchers anticipate that there will be differences not only due to treatment (i.e., the format of the professional development) but also due to contextual differences that may exist from school to school (e.g., some teachers may receive more support from administrators in terms of implementing what was learned in professional development, some teachers may have more resources to implement, and similar contextual differences). The researchers have the following measures on the teachers who participated: 1) format of professional development (three levels: face-to-face, some face-to-face and some online, totally online); 2) level of implementation (interval level variable); 3) school in which the teacher is employed (nominal with 20 levels). Which statistical procedure is most appropriate?

a. analysis of covariance

b. hierarichical (or nested) ANOVA

c. multiple linear regression

d. simple linear regression

Question 4

Joe wants to determine whether the time to run a marathon (ratio level variable) differs, on average, for non-professional athletes who complete a 12 week endurance training program as compared to those who complete a 4 week endurance training program. Joe randomly assigns non-professional athletes to one of the two training programs. In conducting this experiment, Joe also wants to control for the number of prior marathons in which the participant has ran. Which statistical procedure is most appropriate?

b. hierarichical (or nested) ANOVA

c. multiple linear regression

d. simple linear regression

Question 5

Sophie wants to predict the weight of golden retrievers (ratio level variable) by whether they are full blooded or mixed breeds (nominal level variable with two levels). Which statistical procedure do you recommend?

b. hierarichical (or nested) ANOVA

c. multiple linear regression

d. simple linear regression

Question 6

Dedra is interested in examining whether the aggression (interval level variable) of stray dogs changes, on average, depending on the amount of attention provided to them from shelter volunteers (ordinal level variable with three levels: minimum, moderate, maximum). To test the hypothesis, she selects 10 different shelters and she randomly assigns the volunteers at the shelter to provide either mininum, moderate, or maximum attention to the dogs (thus at any one shelter, the volunteers will only provide one level of attention--not a combination). In traveling to the different shelters, she notices that some shelters have better trained volunteers, more resources, a calmer overall environment, and other characteristics that may also effect a dog's agressiveness. Given this situation, what is the best procedure to recommend to Dedra?

b. hierarichical (or nested) ANOVA

c. multiple linear regression

d. simple linear regression

Question 7

Jennifer wants to know whether the amount of time spent surfing the Internet each day (measured in minutes, ratio level variable) and employment status (nominal with two levels: employed or unemployed) can be used to predict the range of motion in a person's fingers (ratio level variable). Which statistical procedure is most appropriate?

b. hierarichical (or nested) ANOVA

c. multiple linear regression

d. simple linear regression

Question 8

A researcher conducts a simple linear regression and finds a correlation coefficient of .62. What is the coefficient of determination and interpretation of the coefficient of determination using Cohen's interpretations?

a. .38, generally interpreted to be a moderate effect.

b. .38, generally interpreted to be a large effect.

c. .62, generally interpreted to be a moderate effect.

d. .62, generally interpreted to be a large effect.

Question 9

Ignoring the nested nature of data when generating inferential statistics leads to which one of the following?

a. Attenuated correlations

b. Decreased alpha

c. Increased alpha

d. Increased power

e. Increased unsystematic variation

Question 10

In a regression analysis with one independent variable (X), what is the predicted value of Y when the intercept is 8.0, the slope is 5.25, and X is 10?

a. 8.0

b. 5.25

c. 52.50

d. 60.5

e. Cannot be answered from the given information.

Question 11

Oscar has found a statistically significant linear model that allows him to predict attitude toward college (interval level variable) from college entrance exam score (interval level variable). The entrance exam scores in his sample ranged from 26 to 34. A fellow researcher wants to use the prediction equation to predict attitudes toward college from a different sample of students whose entrance exam scores ranged from 12 to 18. Do you recommend they proceed?

a. Yes

b. No

Question 12

Randy uses nested ANOVA to analyze data. In examining the residuals, he finds skewness of 14.9, kurtosis of 9.03, and a p value for Shapiro-Wilk's of .001. What does the data suggest?

a. Homogeneity of variances is not a reasonable assumption.

b. Homogeneity of variances is a reasonable assumption.

c. Independence is not a reasonable assumption.

d. Independence is a reasonable assumption.

e. Normality is not a reasonable assumption.

f. Normality is a reasonable assumption.

g. There is a statistically significant nested effect.

h. There is a statistically significant main effect.

Question 13

In generating a simple linear regression, you fail to reject the null hypothesis that the slope is equal to zero. Which of the following will NOT be found?

a. A confidence interval for B (the unstandardized regression coefficient) that contains zero.

b. A non-statistically significant correlation coefficient.

c. A non-statistically significant F test for the model.

d. A p value for the regression coefficient of the independent variable of .001.

Question 14

Maleah examines preschool children and generates analysis to predict height (ratio level variable) based on creativity (interval level variable). She finds that the change in height based on a one unit change in creativity is zero. Given this, what is the best estimate for predicting height?

a. the effect size

b. the intercept

c. the mean of height

d. the mean of creativity

e. the slope of creativity

f. none of the above.

Question 15

Wesley would like to predict the number of hours college freshmen work per week (ratio level variable) from their parents' income (ratio level variable) and the student's previous year's income (ratio level variable). The coefficient for the correlation between parents' income and student's previous year's income is .13. What does this suggest?

a. There may be a problem with multicollinearity between parents' income and student's previous year's income.

b. There may be a problem with multicollinearity between number of hours worked per week and student's previous year's income.

c. There most likely will not be a problem with multicollinearity between parents' income and student's previous year's income.

d. There most likely will not be a problem with multicollinearity between number of hours worked per week and student's previous year's income.

Question 16

The multiple R squared value provided by SPSS when generating a multiple linear regression is .76. This value refers to which one of the following?

a. 58% of the variance of the dependent variable is accounted for by the model.

b. 58% of the variance of the independent variables is accounted for by the dependent variable.

c. 76% of the variance of the dependent variable is accounted for by the model.

d. 76% of the variance of the independent variables is accounted for by the dependent variable.

e. The bivariate correlation coefficient between the independent and dependent variables is .76.

Question 17

The results of a nested ANOVA analysis indicate a statistically significant nested factor. Which of the following is a correct interpretation?

a. The assumption of independence has been violated.

b. Statistically significant main effects should not be interpreted when there is a statistically significant nested factor.

c. There is a statistically significant difference in the dependent measure between the levels of the nested factor within the same level of the independent variable.

d. There is not a statistically significant main effect.

Question 18

The zero order correlation coefficient between the number of ounces of chocolate consumed per day (ratio level variable) and the number of minutes slept per day (ratio level variable) is .21. Which of the following is a correct statement?

a. The p value for the correlation coefficient will be statistically significant.

b. The correlation between chocolate consumed and minutes slept with other independent variables partialed out is .21.

c. The bivariate correlation between chocolate consumed and minutes slept is .21.

d. The bivariate correlation between chocolate consumed and minutes slept is .04.

e. The multiple coefficient of determination is .21.

Question 19

The state department of education wants to know if the contract cost to repair a school [cost] can be predicted by the engineer's estimate of cost for repairs [engest]. Using the construction data set in SPSS. Conduct the appropriate inferential procedure at an alpha level of .05. [Note: conduct the analysis using all cases in the data. In other words, do not remove or filter out any cases that may be outliers, etc.] Which one of the following is correct?

a. Engineer's estimates for cost of school repairs is a good predictor of contract costs for school repairs.

b. Engineer's estimates for cost of school repairs is NOT a good predictor of contract costs for school repairs.

c. The coefficient of determination is not statistically significant.

d. The overall regression model is not statistically significant.

e. The slope is approximately zero.

Question 20

The state department of education wants to know if the contract cost to repair a school [cost] can be predicted by the engineer's estimate of cost for repairs [engest]. Using the construction data set in SPSS. Conduct the appropriate inferential procedure at an alpha level of .05. [Note: conduct the analysis using all cases in the data. In other words, do not remove or filter out any cases that may be outliers, etc.] Which one of the following is correct?

a. About 25% of the proportion of variance of the contract cost to repair schools can be accounted for by its linear relationship with the engineer's estimate of cost for repairs.

b. About 98% of the proportion of variance of the contract cost to repair schools can be accounted for by its linear relationship with the engineer's estimate of cost for repairs.

c. About 98% of the proportion of variance of the engineer's estimate of cost for repairs can be accounted for by its linear relationship with the engineers estimate of the number of days to complete the job.

d. About 93% of the proportion of variance of the engineer's estimate of cost for repairs can be accounted for by its linear relationship with the engineer's estimate of the number of days to complete the job.

Question 21

The state department of education wants to know if the contract cost to repair a school [cost] can be predicted by the engineer's estimate of cost for repairs [engest]. Using the construction data set in SPSS. Conduct the appropriate inferential procedure at an alpha level of .05. [Note: conduct the analysis using all cases in the data. In other words, do not remove or filter out any cases that may be outliers, etc.] Which one of the following is correct?

a. When the contract cost for school repairs increases by $1, the engineer's estimate of cost for school repairs increases by slightly over $25.

b. When the contract cost for school repairs increases by $1, the engineer's estimate of cost for school repairs increases by nearly $1.

c. When the contract cost for school repairs increases by $1, the engineer's estimate of cost for school repairs increases by .009.

d. When the contract cost for school repairs increases by $1, the engineer's estimate of the number of days to complete the job increases by nearly $1.

Question 22

The state department of education wants to know if the contract cost to repair a school [cost] can be predicted by the engineer's estimate of cost for repairs [engest]. Using the construction data set in SPSS. Conduct the appropriate inferential procedure at an alpha level of .05. [Note: conduct the analysis using all cases in the data. In other words, do not remove or filter out any cases that may be outliers, etc.] Which one of the following is correct?

a. The predicted contract cost for school repairs is equal to: 26 + .926(engineer's estimate of cost for school repairs).

b. The predicted engineer's estimate of cost for school repairs is equal to: 26 + .926(contract cost for school repairs).

c. The predicted contract cost for school repairs is equal to: 26 + .926(engineer's estimate of the number of days to complete the job).

d. The prediction equation cannot be determined.

Question 23

The state department of education wants to know if the contract cost to repair a school [cost] can be predicted by the engineer's estimate of school construction cost [engest] and by the engineer's estimate of number of work days needed to build the school [daysest]. Using the construction data set in SPSS. Conduct the appropriate inferential procedure at an alpha level of .05 [Note: conduct the analysis using all cases in the data. In other words, do not remove or filter out any cases that may be outliers, etc.] Which one of the following is correct?

a. The variance inflation factor suggests there is NOT a problem with multicollinearity between the engineer's estimate of school construction cost and the engineer's estimate of number of work days needed to build the school.

b. The variance inflation factor suggests there is a problem with multicollinearity between the engineer's estimate of school construction cost and the engineer's estimate of number of work days needed to build the school.

c. The variance inflation factor suggests there is NOT a problem with multicollinearity between the contract cost to build a school and the engineer's estimate of number of work days needed to build the school.

d. The variance inflation factor suggests there is a problem with multicollinearity between the contract cost to build a school and the engineer's estimate of number of work days needed to build the school.

Question 24

The state department of education wants to know if the contract cost to repair a school [cost] can be predicted by the engineer's estimate of school construction cost [engest] and by the engineer's estimate of number of work days needed to repair the school [daysest]. Using the construction data set in SPSS. Conduct the appropriate inferential procedure at an alpha level of .05 [Note: conduct the analysis using all cases in the data. In other words, do not remove or filter out any cases that may be outliers, etc.] Which one of the following is correct?

a. The bivariate correlation between the engineer's estimate of the number of work days needed to repair the school and the engineer's estimate of the cost for school repairs is .988.

b. About 35% of the variance of the contract cost for school repairs has been accounted for after the engineer's estimate of the cost for school repairs has been adjusted by removing the common variance with the engineer's estimate of number of work days needed to repair the school

c. About 12% of the variance of the engineer's estimate of number of work days needed to repair the school is accounted for by the the engineer's estimated cost for school repairs after controlling for the contract cost to repair the school.