Answer the Following Questions Using the Information Below:
Russo Corporation

question 49

Multiple Choice

Answer the following questions using the information below:
Russo Corporation manufactured 16,000 air conditioners during November. The overhead cost-allocation base is $31.50 per machine-hour. The following variable overhead data pertain to November:
$$\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\\text { Production }& 16,000 \text { units } & 18,000 \text { units } \\\text { Machine-hours } & 7,875 \text { hours }& 9,000 \text { hours } \\\text { Variable overhead cost per machine-hour: } &\$ 31.00 & \$ 31.50\end{array}$$
-What is the actual variable overhead cost?

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Definitions:

Error Term

A variable in statistical models that represents the difference between the observed and predicted values, accounting for randomness or unexplained variation.

Independent

Describes variables in an experiment or study that are manipulated or categorized separately from any other variables.

Normally Distributed

Describes a statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Mathematical Equation

A statement of equality between two expressions which holds true under certain conditions.