The Following Company Information Is Available for January

question 15

Multiple Choice

The following company information is available for January.The direct materials price variance is:

• A)$5,000 favorable.
• B)$ 300 favorable.
• C)$5,200 unfavorable.
• D)$5,000 unfavorable.
• E)$5,200 favorable.

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Definitions:

Normally Distributed

Refers to a bell-shaped distribution that is symmetrical about its mean, often used as a model in statistics for real-valued random variables.

Standard Deviation

An indicator used to determine the extent of fluctuation or scatter among data points in a collection.

Central Limit Theorem

A statistical theory that states that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Sampling Distribution

The distribution of a statistic (like the mean) that would result from taking a large number of samples from a population.