Department D Has Recently Purchased and Installed New Computerized Equipment

question 68

Multiple Choice

Department D has recently purchased and installed new computerized equipment for Product X.This equipment will increase the overhead costs by $2,700 and decrease labor costs (due to time savings) in Department D by $3.00 per case.Machine hours will not change.If Smelly uses a plantwide rate based on machine hours,what is the revised product cost per case for Product X?

• A)$74.00
• B)$82.50
• C)$69.50
• D)$79.50

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Definitions:

Degrees of Freedom

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

T Value

A calculated value from a t-test used to compare the differences between means in relation to the variation in sample data.

Sample Size

The number of observations or data points collected in a study or used in a statistical analysis.

Interval Estimate

An estimate of a population parameter that provides a range of values, defined by lower and upper bounds, that is likely to contain the parameter of interest.