Although There Are Only a Few Runners on Your College

question 62

Multiple Choice

Although there are only a few runners on your college track team,you see a woman on campus who has the physique of a runner.You decide that she's a member of the track team.Your conclusion is based on

• A) the availability heuristic.
• B) the base rate fallacy.
• C) base rate information.
• D) biased sampling.
• E) the representativeness heuristic.

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Definitions:

Variable Factory Overhead Controllable Variance

The difference between the actual variable overhead costs and the budgeted costs that management could control.

Standard Factory Overhead Rate

A rate used to allocate factory overhead costs to products based on expected factory activity.

Machine Hour

Refers to the total number of hours a piece of machinery or equipment is actually used in production, often used in allocating manufacturing costs based on machine hours.

Normal Capacity

Normal capacity is the expected production output or service level that a company can achieve under normal conditions, considering limitations such as time and resources.