Which of the Following Sentences Is Correct

question 9

Multiple Choice

Which of the following sentences is correct?

• A) When there is more random variance than experimental variance, an analysis is likely to be significant.
• B) When there is the same amount of random variance and experimental variance, an analysis is likely to be significant.
• C) When there is more experimental variance than random variance, an analysis is likely to be significant.
• D) When there is no experimental variance, an analysis is likely to be significant.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the production period based on an estimation of costs and activity levels.

Machine-Hours

A unit of measure representing the operation of machinery over time, typically used for allocating manufacturing overhead costs.

Predetermined Overhead Rate

A rate calculated at the beginning of a period for allocating estimated overhead costs to cost objects based on a chosen activity base.

Machine-Hours

This refers to the total number of hours that machinery is in operation, used as a basis for allocating manufacturing overhead to products.