A Company May Set Predetermined Overhead Rates Based on Normal,expected

question 182

Multiple Choice

A company may set predetermined overhead rates based on normal,expected annual,or theoretical capacity.At the end of a period,the fixed overhead spending variance would

• A)be the same regardless of the capacity level selected.
• B)be the largest if theoretical capacity had been selected.
• C)be the smallest if theoretical capacity had been selected.
• D)not occur if actual capacity were the same as the capacity level selecteD.

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Definitions:

Cross-Sectional Group

A research method that involves analyzing data from a population, or a representative subset, at a particular point in time.

Statistically Significant

A term denoting that the likelihood that a relationship between two or more variables is caused by something other than random chance is high enough to be considered notable.

Independent Variable

In research, an independent variable is the variable that is manipulated or controlled by the researcher to study its effect on a dependent variable.

Dependent Variable

In experimental and statistical research, the outcome variable that is measured to assess the effect of the independent variable.