Fletcher Company Collected the Following Data Regarding Production of One

question 23

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products. Compute the total direct materials cost variance. $$\begin{array} { l rl} \text { Direct materlals stardard (6lbs. @ \$2/16.) } & \$ 12 & \text { per finished unit } \\\text { Actual direct materials used } & 243,000 & \text { lbs. } \\\text { Actual finished units produced } & 40,000 & \text { units }\\\text { Actual cost of direct materials used}&\$483,570\\\end{array}$$

• A) $6,000 favorable.
• B) $3,570 unfavorable.
• C) $2,430 favorable.
• D) $6,000 unfavorable.
• E) $3,570 favorable.

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Definitions:

Coefficient Of Determination

A statistical measure represented by \(R^2\), indicating the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Explanatory Variable

A variable in a statistical model that is believed to influence or cause changes in a dependent variable.

Critical Value

A point on the scale of a statistical test that defines the threshold for rejecting the null hypothesis.

Independent Variables

Independent variables are the conditions or inputs that researchers manipulate or select in an experiment to determine their effect on dependent variables.