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Outer Limits, Inc. produces fencing units which require two processes, A and B, to complete. The best-selling type of fence is made of PVC. Information related to the 8,000 units of pvc fencing produced annually is shown below. Outer Limits' total expected overhead costs and related overhead data are shown below. The company uses departmental overhead rates based on machine hours in department A and direct labor hours in department B.
Determine the total amount of overhead assigned to each unit of PVC fencing.
Assumptions
Premises or conditions that are accepted as true or as certain to happen, without proof, within the context of a specific model or method.
Null Hypothesis
A statistical hypothesis that assumes no significant difference or effect exists between certain characteristics of a population or data set.
Level of Risk
The probability or likelihood of an adverse event or outcome occurring, often assessed in the context of decision making and finance.
Fisher's Exact Test
A statistical significance test used for small sample sizes and designed for categorical data, to examine the significance of the association between two kinds of classifications.
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