The Manufacturing Overhead Variance That Is a Measure of Capacity

question 121

Multiple Choice

The manufacturing overhead variance that is a measure of capacity utilization is:

• A) the overhead rate variance.
• B) the overhead efficiency variance.
• C) the overhead budget variance.
• D) the overhead volume variance.

---

Definitions:

Mutually Exclusive

Refers to events that cannot occur at the same time.

P(C)

The probability of occurrence of event C.

Classical Method

A traditional approach in statistical inference focusing on hypothesis testing and estimation based on fixed sample sizes.

Probabilities

Measures of how likely it is for an event to occur, represented as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.