The Sales Volume Variance Was:
A) $16,000 Favorable

question 121

Multiple Choice

$\begin{array}{lcc}\text { Item to Classify}&\text { Standard }&\text {Actual }\\\text { Sales volume } & 100,000 \text { units } & 96,000 \text { units } \\\text { Sales price } & \$ \quad 4 \text { per unit }&\$ 3.90 \text { per unit }\\\text { Materials usage } & 40,000 \text { gallons } & 42,000 \text { gallons } \\\text { Labor price } & 12.50 \text { per Hour } & 12,45 \text { per hour }\end{array}$
The sales volume variance was:

• A) $16,000 favorable.
• B) $16,000 unfavorable.
• C) $25,000 unfavorable.
• D) $25,000 favorable.

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Definitions:

Two-sample Chi-square

The Two-sample Chi-square test is a statistical method used to determine if there is a significant difference between the distributions of two categorical variables.

Expected Values

The predicted value of a variable, computed as a weighted average of all possible values.

Observed Values

The actual measurements or data points collected from an experiment or study, as opposed to theoretical predictions or estimates.

Test of Independence

An analytical method designed to assess if a significant link exists between two categorical variables.