The Following Information Relating to Variable Overhead Is Available for Haven

question 1

Essay

The following information relating to variable overhead is available for Haven Industries:
Spending variance $~~~~~~~~$$~~~~~~~~$ $4,000 unfavorable
Efficiency variance $~~~~~~~~$$~~~~~~~~$ $7,000 favorable
Which of the following is the correct journal entry to record the spending and efficiency variances?

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Definitions:

Analysis of Variance

Analysis of variance (ANOVA) is a statistical method used to compare the means of three or more groups to determine if there are significant differences between them.

Test Statistic

A value calculated from sample data during a hypothesis test, used to make a decision about the relationship between variables or the acceptance of a hypothesis.

Test Statistic

A standardized value derived from sample data during a hypothesis test that is used to determine whether to reject the null hypothesis.

T Value

In statistical hypothesis testing, a value used in T-tests that compares the observed difference between two means relative to the spread or variability of their scores.