The ANOVA Table Splits the Total Variation into Two Parts

question 29

Multiple Choice

The ANOVA table splits the total variation into two parts. They are the:

• A) acceptable and unacceptable variation
• B) adequate and inadequate variation
• C) resolved and unresolved variation
• D) explained and unexplained variation

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Definitions:

Direct Labour-Hours

The total hours worked directly on the manufacturing of goods or provision of services, often used as a basis for allocating overhead.

Overapplied Overhead

When the allocated manufacturing overhead cost exceeds the actual overhead incurred, resulting in a surplus in the cost coverage.

Activity Cost Pools

Aggregations of all the costs associated with particular activities, used in activity-based costing.

Expected Activity

The anticipated level of operations or output, often used in budgeting and planning.