A Company Has Established 5 Pounds of Material M at $2

question 102

Multiple Choice

A company has established 5 pounds of Material M at $2 per pound as the standard for the material in its Product A. The company has just produced 1,000 units of this product, using 5,200 pounds of Material M that cost $9,880.The direct materials price variance is:

• A) $520 unfavorable.
• B) $400 unfavorable.
• C) $120 favorable.
• D) $520 favorable.
• E) $400 favorable.

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Definitions:

Independent Samples

Are samples where the selection of one sample has no impact on the selection of another, typically required in comparative studies.

Ordinal

Pertains to data classification where order matters but not the difference between values, such as rankings or ratings.

One-sample T-test

A statistical test used to determine if the mean of a single sample significantly differs from a known or hypothesized population mean.

Kruskal-Wallis Test

The Kruskal-Wallis Test is a nonparametric method for testing whether samples originate from the same distribution, used when the assumptions of the ANOVA are not met.