A Company Has the Following Information for the Current Month

question 115

Multiple Choice

A company has the following information for the current month of operations: $\begin{array}{ll}\text { Raw materials used } & \$ 37,500 \\\text { Sales }(\$ 97.50 \text { p er unit) } & \$ 117,000 \\\text { Direct labor } & \$ 63,000 \\\text { Variable factory overhead } & \$ 25,500 \\\text { Fixed factory overhead } & \text { unknown }\\\text { Variable s elling and administrative } & \$ 4,500 \\\text { Fixed selling and adminis trative } & \$ 7,500 \\\text { Gross profit } & \$ 45,000 \\\text { Contribution margin } & \text { unknown }\end{array}$

$\begin{array}{lll}\text { Inventories: } & \text { Beginning } & \text { Ending } \\\text { Raw materials } & 0 & \$ 10500 \\\text { WIP } & 0 & \text { none } \\\text { Finished goods } & 0 & 1,200 \text { units }\end{array}$ The cost of goods sold under variable costing is:

• A) $144,000
• B) $63,000
• C) $72,000
• D) $126,000

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Definitions:

Cramér's V

A measure of association between two nominal variables, giving a value between 0 and 1 to indicate the strength of the relationship.

Cramér's V

A quantification of the link between two variables of a nominal type, with a scale from 0 to 1.

Cramér's V

A measure of association between two nominal variables, giving a value between 0 and 1 that indicates the strength of the relationship.

Expected Frequency

The anticipated count in each category of a contingency table under the assumption that the null hypothesis is true, used in chi-square tests.