Instruction 8-17 The Principal of a High School of a Small Suburb

question 114

True/False

Instruction 8-17
The principal of a high school of a small suburb wants to make sure that no more than 5% of the students skip more than 10 days of school in a year. A random sample of 145 students from a population of 800 showed that 12 students skipped more than 10 days of school last year.
-Referring to Instruction 8-17,the principle can conclude with 95% level of confidence that no more than 5% of the students in the high school skipped more than 10 days of school last year.

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Definitions:

Overapplied

A condition where the manufacturing overhead allocated to products exceeds the actual manufacturing overhead costs incurred.

Underapplied

A situation in cost accounting where the allocated overhead costs are less than the actual overhead costs.

Predetermined Overhead Rate

The predetermined overhead rate is a rate used to allocate manufacturing overhead costs to products or job orders, based on estimated overhead costs and activity levels.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard cost allocated, indicating inefficiencies or cost control issues.