Examlex

Solved

Direct Labour Hour Is Often Assumed as the Sole Cost

question 162

Essay

Direct labour hour is often assumed as the sole cost driver in analyzing the total variable overhead cost variance into spending and efficiency variances.
Required:
a)Will direct labour cost ever be a better cost driver of variable overhead costs than direct labour hour? Explain
b)How is the standard variable overhead rate different from the standard labour rate in variance analysis? Explain.


Definitions:

Resample Means

A statistical method involving the calculation of the mean from multiple subsamples of a dataset to assess variability.

Original Data Set

The initial collection of data or observations before any processing or analysis has been conducted.

Trimmed Mean

A measure of central tendency calculated by removing a certain percentage of the smallest and largest values from a data set before calculating the mean of the remaining data.

Bootstrap Confidence Interval

A method for estimating the uncertainty of a statistic by resampling the original data and calculating the statistic across these samples to form an interval.

Related Questions