The Following Information Describes a Company's Usage of Direct Labor

question 135

Multiple Choice

The following information describes a company's usage of direct labor in a recent period. The direct labor efficiency variance is:

• A) $29,000 unfavorable.
• B) $29,000 favorable.
• C) $22,500 unfavorable.
• D) $52,500 favorable.
• E) $52,500 unfavorable.

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Definitions:

Normal Approximation

A method used to approximate the distribution of a sum of independent random variables using the normal distribution, under certain conditions.

Continuity Correction

An adjustment made when approximating a discrete distribution with a continuous one, particularly relevant when making inferences about binomial distribution using normal approximation.

Null Hypothesis

A statement in statistics that suggests there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples to determine if their population mean ranks differ.