During August,10,000 Units Were Produced

question 21

Multiple Choice

During August,10,000 units were produced.The standard quantity of material allowed per unit was 10 kilograms at a standard cost of $3 per kilogram.If there was an unfavourable usage variance of $18,750 for August,what would be the actual quantity of materials used?

• A)23,438 kilograms
• B)31,875 kilograms
• C)93,750 kilograms
• D)106,250 kilograms

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Definitions:

Sampling Error

The difference between a population parameter and a sample statistic caused by only observing a subset rather than the whole population.

Sampling Process

The practice of selecting a subset of individuals, items, or data points from within a larger population to estimate characteristics of the whole population.

Sampling Error

The discrepancy between the statistical characteristics of a population and those of a sample supposedly representing that population.

Bias

A systematic error or deviation from true results or values, caused by factors that skew the data in a certain direction.