Farmers Often Sell Fruits and Vegetables at Roadside Stands During

question 47

Essay

Farmers often sell fruits and vegetables at roadside stands during the summer. One such roadside stand has a daily demand for tomatoes that is approximately normally distributed with a mean of 405 tomatoes and a standard deviation of 30 tomatoes. If there are 363 tomatoes available to be sold at the roadside stand at the beginning of a day, what is the probability that they will all be sold?

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated, based on the actual activity level.

Variable Overhead Standards

The predetermined costs associated with variable overheads that are expected to be incurred under normal operating conditions.

Direct Labor-hours

The total hours worked directly on manufacturing a product or providing a service, used as a basis for allocating labor costs in product costing.

Quantity Standard

Pre-determined measure set for the amount of input that should be used in producing a unit of output.