The Following Information Is for Parma Corporation * Direct Material Is Measured in Pounds Is the Direct-

question 63

Multiple Choice

The following information is for Parma Corporation: $\begin{array}{ll}&\text { Direct Material }\\\text { Standard price } p \text { er unit of input } & \$ 29 \\\text { Actual price per unit of input } & \$ 27 \\\text { Stand ard inputs allowed per unit of output } & 3 \text { pounds } \\\text { Actual units of input } & 9,300 \text { pounds } \\\text { Actual units of output } & 2,770 \text { units }\end{array}$ * Direct material is measured in pounds is the direct- material price variance.

• A) $18,600 favorable
• B) $5,540 favorable
• C) $18,600 unfavorable
• D) $5,540 unfavorable

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Definitions:

Mean

A statistical measure defined as the sum of all values in a data set divided by the number of values, representing the average.

Median

The middle value in a sorted list of numbers, effectively dividing the dataset into two equal halves.

IQR

Stands for Interquartile Range, a measure of variability in statistics that describes the middle 50% of values when ordered from least to greatest.

Range

Range is a measure of the spread or dispersion within a data set, calculated as the difference between the highest and lowest values in the set.