The formula for calculating a confidence interval for samples larger than 30 is .
Definitions:
Quantity Variance
A measure of the difference between the expected and actual quantities used in production, affecting materials or labor.
Overhead Absorbed
The overhead rate multiplied by standard units of volume.
Direct Labor Hours
The total amount of time spent by employees directly involved in manufacturing products or providing services.
Overhead Volume Variance
The flexible budget at standard volume less the overhead applied. It is an estimate of the unused or overused fixed plant capacity.
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