The standard cost of Product B manufactured by Oriole Company includes 3.5 units of direct materials at $5.40 per unit. During June, 27,300 units of direct materials are purchased at a cost of $5.15 per unit, and 27,300 units of direct materials are used to produce 7,600 units of Product B. (a) Compute the total materials variance and the price and quantity variances. Total materials variance Materials price variance Materials quantity variance $ (b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.35 and the quantity purchased and used is 26,300 units. Total materials variance Materials price variance Materials quantity variance $

For most cases, a p value of 0.05 is used to determine whether results fit expected values. Is this a magic number, or could p values be set more stringently, say 0.01, or more lax, say 0.10? What effect would these values have on the reliability of the chi-square test?