Thilges Incorporated Makes a Single Product--A Cooling Coil Used in Commercial

question 101

Multiple Choice

Thilges Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
The variable overhead efficiency variance is:

• A) $1,740 U
• B) $1,398 F
• C) $1,740 F
• D) $1,398 U

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Definitions:

Construct Validity

The extent to which a test or instrument accurately measures the theoretical construct or concept it is intended to assess.

Face Validity

The degree to which a measurement device appears to accurately measure a variable.

Criterion Validity

The extent to which a measure is correlated with, or predictive of, an outcome of interest, often assessed through correlations with other known indicators.

Divergent Validity

A measure of validity that ensures an assessment does not strongly correlate with tests from unrelated constructs, thus proving its specificity.