In a Four-Variance Method Analyzing Factory Overhead,the Variable Factory Overhead

question 28

Multiple Choice

In a four-variance method analyzing factory overhead,the variable factory overhead efficiency variance measures:

• A)The effect of differences in the actual variable factory overhead rate and the standard variable factory overhead rate.
• B)The difference in the actual hours incurred and standard hours allowed for a given level of production.
• C)The difference between actual and applied variable factory overhead.
• D)The difference between actual variable factory overhead and budgeted variable factory overhead.

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Definitions:

Nominal Variables

Variables that represent categories with no inherent order or rank among them.

Test Statistic

A figure derived from data within a sample during an empiric test, employed to determine the necessity of dismissing the null hypothesis.

Seat Belts

Equipment installed in vehicles to shield individuals from injurious motion during crashes or sudden stops.

Z-test

A statistical procedure that determines whether the averages of two large-sample populations differ significantly, assuming variances are known.