Using the Standard Costs of $5 Per Pound for a 10

question 98

Multiple Choice

Using the standard costs of $5 per pound for a 10 pound bag of chocolate and the following actual cost and usage data,compute the direct materials price variance.
$\begin{array}{ll}\text { Direct materials purchased and used } & 99,000 \text { pounds } \\\text { Price paid for direct materials } & \$ 4.00 \text { per pound } \\\text { Number of good units produced } & 9,000 \text { units }\end{array}$

• A) $45,000 (F)
• B) $45,000 (U)
• C) $54,000 (F)
• D) $99,000 (F)

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Definitions:

Interval

A range of values between two points, often used in statistics to describe the confidence interval around an estimate.

Continuous Random Variables

Variables that can take an infinite number of values within a given range.

Infinite

A term describing a quantity without bounds or end, often used in mathematics and physics.

Continuous Probability Distributions

Probability distributions in which the data can take infinitely many values within a given range.