Figure 5-1

question 77

Multiple Choice

Figure 5-1.Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor hours to be 40,000. During February, Morrow has 4,200 direct labor hours and 8,000 machine hours.
-Refer to Figure 5-1. If the actual overhead for February is $64,700, what is the overhead variance and is it overapplied or underapplied?

• A) $400 underapplied
• B) $200 overapplied
• C) $1,000 underapplied
• D) $400 overapplied
• E) $600 overapplied

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Definitions:

Statistical Power

The probability that a statistical test will correctly reject a false null hypothesis, or the test's sensitivity to detect an actual effect when there is one.

Cohen's D

Estimate of the magnitude of the difference between the means of two groups measured in standard deviation units.

Cohen's D

An indicator of the magnitude of difference, displaying the standardized deviation between two averages.

Cohen's D

A measure of the size of an effect for a hypothesis test; it is the difference between two means divided by the standard deviation of the data.