Reference: 11-05
the Dexon Company Makes and Sells a Single

question 80

Multiple Choice

Reference: 11-05
The Dexon Company makes and sells a single product called a Mip and employs a standard costing system. The following standards have been established for one unit of Mip: $$\begin{array} { | l | l | l | } \hline & \text { Standard Quantity of Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct materials } & 6 \text { board metres } & \$ 9.00 \\\hline \text { Direct labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$$ There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $20,060.
-To record the use of direct materials in production, the general ledger would include what entry to the materials quantity variance account?

• A)$900 debit.
• B)$900 credit.
• C)$3,600 credit.
• D)$3,600 debit.

Recognize the null hypothesis and its role in statistical tests.

Distinguish between true and false interpretations of p-values.

Appreciate the application and interpretation of regression analysis in empirical economics.

Evaluate the statistical significance of survey results based on sample size and population characteristics.

---

Definitions:

Circular-Flow Diagram

A visual model of the economy showing the interactions between households and businesses through the markets for products and resources.

Firms

Business organizations that use resources to produce goods or services for profit.

Goods and Services

Refers to tangible products and intangible activities that fulfill the needs or wants of consumers.

Factors of Production

Resources used in the production of goods and services, including labor, capital, land, and entrepreneurship.