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:

Inference

The process of drawing conclusions about a population based on data from a sample.

Statistical Inference

The process of using data analysis to deduce properties of an underlying probability distribution.

Estimate

An approximation or educated guess of a certain quantity based on available data.

Population

The entire group or set of items or individuals from which samples may be drawn for statistical analysis.