The following direct materials variance computations are incomplete:
Price variance = ($? - $7) x 10,800 pounds = $5,400 U
Efficiency variance = (? - 10,400 pounds) x &7 = ?U
Flexible budget variance = $?

Solution Preview

Direct Material Price Variance

First of all, to answer this question you will need to know the formula used to calculate the direct material price variance:

DM price variance = AQ ( AP - SP)
AQ = Actual quantity
AP = Actual price
SP = standard price

It's important to note that the actual quantity can refer to the quantity purchased, which is most useful for the direct material price variance, or the quantity used, which is most useful when calculating efficiency variances.

We are told that the price variance is (? - 7) x 10,800 = 5,400 unfavorable

Since the price variance is unfavorable, we know that the actual price paid per unit of material was more than the standard price per unit of that material. Therefore, we know that the ? is a number greater than 7. We can now use algebra to solve for the unknown. The steps are ...

Solution Summary

This questions shows step-by-step calculations of the direct material price variance, direct material efficiency variance, and the flexbiel budget variance.

The weights of a random sample of cereal boxes that are supposed to weigh one pound are listed here. Estimate the variance of the entire population of cereal box weights with 90% confidence.
1.05 1.03 .98 1.00 .99 .97 1.01 .96

You want to make a statement about the variability in the costs of personnel shelters. After collecting sample data (cost in $K) on 9 shelters you perform some preliminary calculations.
Given the information provided:
The coefficient of variation is about 17.64%
The variance is about $61.72K
The stand

Diamond Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of material is $7.50. During the month, 8,500 chairs were manufactured, using 43,700 yards at a cost of $7.60. Determine the (a) price variance, (b) quantity variance, and (c) cost variance.

Stanton Company use the following standards in the production of its only product:
Direct Materials: 18 Pounds @ $25 per pound
Direct Labor: 6 Hours @ $18 Per Hour
During March, company records showed the following:
Materials purchased: 12,000 Pounds @ $264,000
Materials used: 15,000 Pounds
Direct Labor Hours: 4,700 Hours

If the multiple coefficient of determination that relates x3 to all the other independent variables, R2(x3) = .8, calculate the variance inflation factor for x3. Should the analyst be concerned about multicollinearity? Why?

I'm having trouble figuring out the standard quantity and standard hours. I'm not sure that the rest of my calculations are correct either. Then there are the actual variances themselves and while I have the formulas they don't seem correct.

Please see the attached file for full problem.
a) Using the results for the gamma distribution, show that s^2 is an unbiased estimator of sigma^2. Also state its variance.
b) Consider a statistic of the form T_k = ks^2, for some constant k. Find expressions for the bias and variance of T_k as an estimator of sigma^2. Hene,