For the Pair of Histograms Below, Determine Which Distribution Has

question 40

Multiple Choice

For the pair of histograms below, determine which distribution has the smaller standard deviation.

• A)(i) has a smaller standard deviation than (ii).
• B)(ii) has a smaller standard deviation than (i).
• C)Both histograms have the same standard deviation.
• D)There is no way to determine which one is smaller.

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Definitions:

Machine-hours

A measure of the amount of time machines are utilized in the production process.

Overhead Applied

The process of allocating indirect costs to specific cost objects such as products or projects.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, calculated at the beginning of an accounting period.

Manufacturing Overhead

All indirect costs associated with manufacturing, including equipment maintenance, utilities, and factory management salaries.