Coderre Corporation Manufactures and Sells a Single Product

question 5

Multiple Choice

Coderre Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During July,the company budgeted for 7,800 units,but its actual level of activity was 7,780 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Actual results for July: The direct materials in the flexible budget for July would be closest to:

• A)$69,242
• B)$69,490
• C)$69,420
• D)$69,134

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Definitions:

Possible Outcomes

The set of all possible results that can occur from a particular experiment or event.

Experiment

An experiment is a controlled study in which variables are manipulated to determine their effects on other variables.

Relative Frequency Approach

A method for estimating probabilities by dividing the number of observed occurrences of an event by the total number of observations.

Wireless Phone

A communication device that does not require a physical connection to a telephone network, often referring to mobile or cordless phones.