The Data Below Shows Samples of Annual Salaries (In Thousands

question 77

Essay

The data below shows samples of annual salaries (in thousands of dollars) for accountants in two different firms. Use Excel to determine whether the variance in salaries in Company A differs from than that of Company B? Use a .10 level of significance.

---

Definitions:

Overhead Cost

Indirect costs required for production that cannot be directly traced to specific products, such as utilities, rent, and administrative expenses.

Activity-Based Costing

A detailed approach to determining the cost of a product or service by attributing overhead costs based on each product's activities.

Activity Cost Pools

Groups of individual costs caused by specific activities, used in activity-based costing to allocate costs to products or services.

Overhead Cost Per Unit

The allocation of total fixed and variable manufacturing overhead costs to individual units of product.