Fletcher Company Collected the Following Data Regarding Production of One

question 125

Multiple Choice

Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance. $\begin{array}{llr} \text { Direct materrals standard (6 lbs. @ \$2/1b.) } &\$12& \text { per finished unit } \\ \text { Actual direct materials used} &243,000& \text {Ibs. } \\ \text {Actual finished units produced } &40,000& \text {units } \\ \text { Actual cost of direct materials used } &\$483,570\\\end{array}$

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

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Definitions:

Probability Density Function

A function that describes the likelihood of finding a continuous random variable within a particular range of values.

Random Variable

A variable with values that are contingent upon the results of a stochastic event.

Uniform Distribution

A type of probability distribution where all outcomes are equally likely to occur.

Continuous Random Variable

A variable that can take an infinite number of possible values in a continuum within a given range, such as any real number between two points.