New Developments in Technology Have Had a Big Impact on the Production

question 266

True/False

New developments in technology have had a big impact on the production area of a business, but much less impact on the marketing area.

Identify the role of machine-hours and other allocation bases in overhead rate calculation.

Understand the financial implications of basing overhead rates on estimated vs. capacity activity levels.

Calculate the estimated total manufacturing overhead for the year.

Calculate the predetermined overhead rate for the year.

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Definitions:

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed deviation in data is due to chance.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution minus the number of parameters estimated.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is true, commonly set at 0.05 or 5%.

Chi-Square Value

A statistic that measures the difference between observed and expected frequencies to test for independence in categorical variables.