Favreau Corporation Estimates That Its Variable Manufacturing Overhead Is $6

question 72

Multiple Choice

Favreau Corporation estimates that its variable manufacturing overhead is $6.10 per machine-hour and its fixed manufacturing overhead is $352,590 per period.
-If the denominator level of activity is 7,000 machine-hours,the predetermined overhead rate would be:

• A)$50.37
• B)$56.47
• C)$610.00
• D)$6.10

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Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often related to the number of values in the final calculation of a statistic that are free to vary.

F Distribution

A probability distribution that arises frequently as the null distribution of a test statistic, especially in the context of variance analysis or ANOVA.

Numerator

The top number in a fraction that represents the part of the whole or the dividend in division.

Test Statistic

A value calculated from sample data to evaluate a hypothesis about a population parameter.