The Director of a State Agency Believes That the Average

question 14

Multiple Choice

The director of a state agency believes that the average starting salary for clerical employees in the state is less than $30,000 per year.To test her hypothesis,she has collected a simple random sample of 100 starting clerical salaries from across the state and found that the sample mean is $29,750.State the appropriate null and alternative hypotheses.

• A)H₀ : μ ≥ 30,000 H_A : μ < 30,000
• B)H₀ : μ ≥ 29,750 H_A : μ < 29,750
• C)H₀ : μ ≤ 30,000 H_A : μ > 30,000
• D)H₀ : μ ≤ 29,750 H_A : μ > 29,750

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Definitions:

Standard Costing

An accounting method where predetermined costs are used for valuing inventory and cost of goods sold, facilitating variance analysis to control costs.

Variable Overhead

Costs that change in proportion to the level of manufacturing or service activities, such as materials and utilities.

Labour Efficiency Variance

It measures the effectiveness of labor usage by comparing the budgeted hours for a set level of production against the actual hours worked, indicating efficiency or inefficiency in labor use.

Static Budget

A budget that does not change or adjust over the period, established at the start of a period and based on a fixed level of activity.