Exhibit 22-4 Simple Random Sampling Has Been Used to Obtain a Sample

question 2

Multiple Choice

Exhibit 22-4
Simple random sampling has been used to obtain a sample of size 50 from a population of size 500. The sample proportion was 0.7.
-Refer to Exhibit 22-4. The estimate of the standard error of proportion is

• A)0.210
• B)0.700
• C)0.300
• D)0.062

Understand the concept and calculation of variable overhead rate and efficiency variances.

Understand the concept and calculation of materials quantity variance.

Understand the concept and calculation of raw materials price variance.

Understand how to classify variances as favorable or unfavorable.

---

Definitions:

Standard Costs

Standard costs are the expected costs of manufacturing a product under normal conditions, including direct labor, direct materials, and factory overhead.

Standard Costs

Predetermined or estimated costs used for planning and control purposes in budgeting and cost management.

Stockholders

The owners of a corporation.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to evaluate actual production costs.