Which One of the Following Factory Overhead Variances Reflects the Effect

question 66

Multiple Choice

Which one of the following factory overhead variances reflects the effect of deviation in input quantities only if the cost driver for applying variable overhead is a perfect predictor of variable overhead cost?

• A) Total variable overhead variance.
• B) Variable overhead rate variance.
• C) Variable overhead spending variance.
• D) Variable overhead flexible-budget variance.
• E) Variable overhead efficiency variance.

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Definitions:

Null Hypothesis

A statement asserting there is no effect or no difference, which researchers attempt to disprove through statistical testing.

Alternative Hypothesis

A statement in hypothesis testing that proposes a significant difference or effect, contradicting the null hypothesis.

Statistical Evidence

Data and information gathered from statistical analyses that support or reject hypotheses, used to make conclusions or inferences about the characteristics of populations.

P-Value

The probability of obtaining test results at least as extreme as the results observed, assuming that the null hypothesis is correct.