The Following Is Taken from Clausen Company's Internal Records of Its

question 17

Multiple Choice

The following is taken from Clausen Company's internal records of its factory with two operating departments.The cost driver for indirect labor is direct labor hours,and the cost driver for the remaining items is number of hours of machine use.Compute the total amount of rent and utilities allocated to Dept.2 using activity-based costing.

• A)$6,000.
• B)$13,134.
• C)$8,566.
• D)$14,092.
• E)$14,152.

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Definitions:

Multiple Regression

A statistical technique that analyzes the relationship between multiple independent variables and a single dependent variable.

Large Sample

A statistical concept where the sample size is sufficiently large to approximate certain properties of the entire population under study.

ANOVA F Statistic

A statistic used in Analysis of Variance (ANOVA) tests to determine if there are significant differences between the means of three or more groups.

Significance Level

A threshold chosen by the researcher which the p-value must be below in order to reject the null hypothesis.