Two Different Varieties of Pumpkin Have the Same Mean Fresh

question 5

Essay

Two different varieties of pumpkin have the same mean fresh weight of 22.5 lb. However, one variety (LV) has a very low variance, while the other (HV) has a much higher variance in fresh weight.
a. What are some possible reasons for the differences in the variance between these two varieties?
b. If you were a pumpkin breeder and wanted to develop a heavier variety of pumpkin, which of these two varieties would you select to start your breeding program? Explain why.

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Definitions:

Overhead Applied

Refers to the allocation of indirect costs to specific cost objects, such as products or services, based on a predetermined rate or basis.

Direct Labor-Hours

The total hours of labor directly involved in the manufacturing process, used as a basis for allocating manufacturing overhead to products.

Departmental Predetermined Overhead Rates

The estimated overhead rates assigned to different departments within a company, used for more accurate product costing.

Markup

The amount added to the cost price of goods to cover overhead and profit; a percentage of the cost.