Dillon Has a Standard of 1

question 92

Multiple Choice

Dillon has a standard of 1.5 pounds of materials per unit at $6 per pound. In producing 2000 units Dillon used 3100 pounds of materials at a total cost of $18135. Dillon's materials price variance is

• A) $135 U.
• B) $465 F.
• C) $600 F.
• D) $1050 F.

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Definitions:

T Test

A statistical test used to compare the means of two groups and determine if they are significantly different from each other.

T Statistic

A type of statistic used in hypothesis testing, especially for small sample sizes, calculated to compare an observed sample mean to a theoretical population mean.

Straight-line Relationship

A linear connection between two variables, represented graphically by a straight line, indicating a constant rate of change.

Mileage

The number of miles traveled or covered by a vehicle, often used to indicate fuel efficiency or the extent of vehicle use.