Use the Following Information for the Next 6 Questions

question 91

Multiple Choice

Use the following information for the next 6 questions.
Hyteck, Inc. is a capital intensive firm. Indirect costs make up nearly 70% of the product costs. The company has no direct material costs because customers provide the direct materials used for each job. To plan and control such costs, the firm employs flexible budgets and standard costs. Overhead rates, based on direct labor hours, are derived from the master budget.
-The direct labor price variance was

• A) $2,000 F
• B) $2,800 U
• C) $1,000 U
• D) $1,000 F

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Definitions:

Standard Deviation

Measures the amount of variation or dispersion from the average in a set of data points.

Test Statistic

A value calculated from sample data and used in a hypothesis test to decide whether to reject the null hypothesis.

Random Sample

A random sample from an infinite population is a sample selected such that the following conditions are satisfied: (1) Each element selected comes from the same population; (2) each element is selected independently.

Level Of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true, used as a threshold for statistical significance.