A Manufacturing Company That Has Only One Product Has Established

question 163

Multiple Choice

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.
The following data pertain to operations for the last month:

-The variable overhead rate variance is:

• A) $1,000 Favorable
• B) $1,000 Unfavorable
• C) $3,500 Unfavorable
• D) $3,500 Favorable

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Definitions:

Confidence Level

It describes the degree of certainty associated with a statistical estimate or range, typically expressed as a percentage, indicating how likely it is that the true value lies within a specified interval.

Confidence Interval

A range of numbers, derived from statistical analyses of samples, likely to possess the value of a population parameter that remains unknown.

Confidence Interval

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter.

Sample Mean

The average of a set of numerical values taken from a sample, intended to estimate the population mean.