Refer to the Situation in Problem 7; You Are Not

question 5

Essay

Refer to the situation in problem 7; you are not able to determine the exact value of either the mean or
the median, but you should be able to get a sense of where they lie based on the graph. Knowing this,
which one of these two measures would be larger, the mean or the median? Explain.

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Definitions:

Machine-Hours

A measurement of the amount of time a machine is operated, used in allocating costs or determining production levels.

Molding

The process of shaping a pliable raw material by using a rigid frame or model called a mold.

Assembly

The process of putting together various components or pieces to build a finished product.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to estimate the cost of manufacturing overhead for a specific activity base.