A Consulting Report That Was Recently Submitted to a Company

question 31

Multiple Choice

A consulting report that was recently submitted to a company indicated that a hypothesis test for a single population variance was conducted. The report indicated that the test statistic was 34.79, the hypothesized variance was 345 and the sample variance 600. However, the report did not indicate what the sample size was. What was it?

• A) n = 100
• B) Approximately n = 18
• C) Approximately 21
• D) Can't be determined without knowing what alpha is.

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Definitions:

Predetermined Overhead Rate

The predetermined overhead rate is calculated by dividing estimated overhead costs by an allocation base, such as direct labor hours, to allocate overhead costs to products or services.

Manufacturing Overhead

All indirect costs related to the production process, such as the costs of maintenance, supplies, and utilities, excluding direct materials and direct labor.

Direct Labor-Hour

A measure of labor productivity that indicates the amount of labor input in terms of hours for producing one unit of output.

Job-Order Costing

A cost accounting system in which costs are assigned to specific jobs or batches, used in industries where goods or services are produced upon request.