The Covey Corporation Is Preparing Its Manufacturing Overhead Budget for the Fourth

question 128

Multiple Choice

The Covey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $4.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $64,000 per month, of which $18,000 is factory depreciation. If the budgeted direct labor time for October is 8,000 hours, then the total budgeted manufacturing overhead for October is:

• A)$96,000
• B)$78,000
• C)$64,000
• D)$76,000

---

Definitions:

P-Value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is true.

P-Value

The probability of observing a test statistic at least as extreme as the one observed, under the assumption that the null hypothesis is true.

Level of Significance

The probability of rejecting the null hypothesis when it is actually true, used as a threshold in hypothesis testing.

Test Statistic

A calculated value from a data sample used to test a hypothesis against some criteria.