Franklin Company's Expected Sales Were 2,000 Units at $100 Per

question 84

Multiple Choice

Franklin Company's expected sales were 2,000 units at $100 per unit. During 2018, it had actual sales of 1,800 units at $110 per unit. Budgeted variable costs were $60 per unit.
What is Franklin's total sales variance?

• A)$8,000 (U)
• B)$20,000 (U)
• C)$18,000 (F)
• D)$2,000 (U)

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Definitions:

Cheated

Engaged in dishonest behavior to gain an unfair advantage, often in a context such as an exam or competition.

Type II Error

Occurs when a false null hypothesis is not rejected.

Statistical Power

The probability that a statistical test will correctly reject a false null hypothesis, a measure of a test's ability to detect an effect if there is one.

Type II Error

The error made by failing to reject a false null hypothesis, also known as a "false negative."