A Company Has 2 Machines That Produce Widgets

question 141

Multiple Choice

A company has 2 machines that produce widgets. An older machine produces 23% defective widgets, while the new machine produces only 8% defective widgets. In addition, the new
Machine produces 3 times as many widgets as the older machine does. Given that a widget was
Produced by the new machine, what is the probability it is not defective?

• A) 0.06
• B) 0.50
• C) 0.92
• D) 0.94

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Definitions:

Service Department Expenses

Costs associated with departments that support the primary operations of a company, like IT support, human resources, and maintenance.

Activity Base

A measure used as a foundation for allocating costs in activity-based costing, representing transactions or events that cause costs to be incurred.

Payroll Checks

Checks issued to employees as payment for their services, representing wages or salaries.

Activity Base

A measure or factor used as a basis for allocating costs in managerial accounting, often related to the volume of production activity or the level of service provided.