State Whether the Null Hypothesis Should Be Rejected on the Basis

question 37

Multiple Choice

State whether the null hypothesis should be rejected on the basis of the given P-value.
P-value = 0.172, , one-tailed test

• A) Do not reject.
• B) Reject.

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Definitions:

Standard Rate

A predetermined cost or price that is used for calculating variances, budgeting, or setting product prices.

Variable Overhead

The portion of overhead costs that varies directly with production volume.

Variable Overhead Rate Variance

The variance between the expected variable overhead according to standard cost and the actual variable overhead costs incurred.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs and the standard cost of variable overheads for the actual production units.