A Fast-Food Restaurant Chain Has 623 Outlets in the United

question 8

Multiple Choice

A fast-food restaurant chain has 623 outlets in the United States. The following table categorizes them by city population and location and presents the number of outlets in each category. An outlet is chosen at random from the 623 to test market a new menu

Given that the outlet is located in a city with a population under 50,000, what is the probability that it is in the Southwest?

• A)0.164
• B)0.255
• C)0.265
• D)0.043

Calculate factory overhead cost per product unit using direct labor hours.

Analyze the allocation of total factory overhead to product production based on budgeted and actual production units.

Comprehend the principle and benefit of activity-based costing in allocating factory overhead.

Identify appropriate allocation bases for different factory overhead activities.

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Definitions:

Administrative Costs

Expenses related to the general administration of a business, including salaries of executives, office supplies, and legal and accounting services.

Indirect Costs

Costs that cannot be directly linked to the production or sale of specific goods or services, like utilities or administrative salaries.

Advertising

The activity or profession of producing advertisements for commercial products or services.

Product Cost

The total cost involved in making or acquiring a product, including direct materials, labor, and overhead expenses.