Assume That Sample Data,based on Two Independent Samples of Size

question 22

Multiple Choice

Assume that sample data,based on two independent samples of size 25,give us = 505, = 515,s₁ = 23,and s₂ = 28.What is a 95% confidence interval (use the conservative value for the degrees of freedom) for ₂ - ₁?

• A)(-2.40,22.40)
• B)(-4.57,24.57)
• C)(-4.96,24.96)
• D)(5.79,14.21)

---

Definitions:

Variable Overhead Spending Variance

The difference between the actual variable overheads incurred and the expected costs based on standard overhead rates.

Standard Quantity

The expected or predetermined amount of materials or input required to produce a single unit of product.

Standard Price

A predetermined cost assigned to materials, labor, and overhead, used as a benchmark against which the actual costs are compared.