The Following Information Is Available for Baxter Manufacturing for April

question 106

Multiple Choice

The following information is available for Baxter Manufacturing for April:
$\begin{array}{lrr} \text { Actual machine hours } &840\\ \text { Standard machine hours allowed} &900\\ \text { Denominator activity (machine hours) } &1,000\\ \text {Actual fixed overhead costs } &\$3,800\\ \text { Budgeted fixed overhead costs } &\$4,000\\ \text { Predetermined overhead rate ( \( \$ 1 \) variable \( +\$ 4 \) fixed) } &\$\quad5\\\end{array}$

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What is the production volume variance?

• A) $200.
• B) $400.
• C) $300.
• D) $240.

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Definitions:

Sampling Distribution

The pattern of probabilities that emerge from a statistic calculated from a random-sample origins.

Deli Purchases

Transactions involving the buying of food and related items from a deli or delicatessen.

Standard Deviation

An indicator of the extent of variability or distribution within a group of numbers, demonstrating how significantly each number in the collection deviates from the average.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to estimate population parameters.