Exhibit 13

question 84

Multiple Choice

Exhibit 13.6 A researcher wants to understand how annual mortgage payment (in dollars) depends on income level and zonal location using a two-way ANOVA without interaction.The data and an incomplete ANOVA table are shown below. Refer to Exhibit 13.6.Which of the following are the total degrees of freedom?

• A)10
• B)11
• C)12

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Definitions:

Variable Manufacturing Overhead

Costs that vary with production volume, such as utilities and materials used in the production process.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (standard) overhead based on the efficient use of resources.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the expected costs at the standard variable overhead rate.

Standard Variable Overhead Rate

A predetermined rate used in costing to allocate variable manufacturing overhead to individual units of production based on a standard amount of an allocation base, such as direct labor hours or machine hours.