AUDITING+ASSURANCE 12MONTH ACCESS CARD
AUDITING+ASSURANCE 12MONTH ACCESS CARD
17th Edition
ISBN: 9780135635131
Author: ARENS
Publisher: WILEY
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Chapter 15, Problem 21RQ
To determine

Evaluate the CUER at a 10 percent ARO if four exceptions are found in the sample using statistical attributes sampling. Also, describe the meaning of the statistical results in auditing terms.

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This Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows: Actual overhead variable costs Standard hours allowed for actual production Actual labor hours worked $ 78,000 10,000 9,800 How much is the controllable overhead spending variance? a. $2,000 favorable b. $400 favorable c. $400 unfavorable d. $2,000 unfavorable
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