Production Estimates for August Are as Follows: for Each

question 34

Multiple Choice

Production estimates for August are as follows: For each unit produced, the direct materials requirements are as follows:

The total direct materials purchases (assuming no beginning or ending inventory of material) of materials A and B required for August production is:

• A) $1,080,000 for A; $1,296,000 for B
• B) $1,080,000 for A; $648,000 for B
• C) $1,125,000 for A; $675,000 for B
• D) $1,170,000 for A; $702,000 for B

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Definitions:

Smallest Variance

The smallest degree of spread or dispersion of observations around the mean in a dataset, indicating less variability.

Relatively Efficient

Refers to a process or system that achieves its goals with comparatively minimal waste of time, resources, or energy.

Larger Sample

Refers to increasing the number of observations in a sample to reduce random sampling error and make the sample statistics more representative of the population.

Sample Variance

A measure of the dispersion or spread in a set of sample data, calculated by averaging the squared deviations from the sample mean.