Calverton,Inc

question 59

Multiple Choice

Calverton,Inc.produces two different products (Standard and Luxury) using two different activities: Machining,which uses machine hours as an activity driver,and Inspection,which uses number of batches as an activity driver.The cost of Machining is $500,000,while the cost of Inspection is $30,000.Standard is assigned $150,000 in Machining cost,and $22,500 in Inspection cost.What proportion of Inspection activity is used by Standard?

• A)25%
• B)33%
• C)67%
• D)75%

---

Definitions:

Degrees of Freedom

Represents the number of independent values or quantities that can vary in the analysis without breaking any constraints.

Categories

Specific groups or classes within a dataset that are used to classify observations.

Chi-square

A statistical test that measures the discrepancy between observed and expected frequencies in categorical data to assess significance.

McNemar Test

A statistical test used on paired nominal data to determine whether the row and column marginal frequencies are equal.