Supreme Catering at the End of January, Supreme Catering Prepared

question 102

Multiple Choice

Supreme Catering At the end of January, Supreme Catering prepared the following budget for the upcoming month of February estimating that they would serve 5,000 people:
During February, there were 4,800 guests actually served. Actual costs incurred were $67,200 for variable costs and $8,000 for fixed costs. Each guest was charged $25.
Refer to the Supreme Catering information above. Supreme Catering's flexible budget variance for February would show a variance of:

• A) $15,400 U.
• B) $15,400 F.
• C) $18,200 U.
• D) $18,200 F.

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Definitions:

Alternative Hypothesis

In statistical hypothesis testing, the hypothesis that suggests there is an effect or a difference, as opposed to the null hypothesis which suggests there is no effect or difference.

P-Value

The probability of obtaining test results at least as extreme as the results actually observed, assuming that the null hypothesis is correct.

Sign Test

A non-parametric test used to determine if there is a significant difference between paired observations.

Tied Pairs

Occurs when pairs of subjects have identical values for either the treatment or the control variable in matched-pairs experiments.