A Truck Gets 600/x Mpg When Driven at a Constant

question 131

Multiple Choice

A truck gets 600/x mpg when driven at a constant speed of x mph (between 40 and 80 mph) . If the price of fuel is $1/gallon and the driver is paid $8/hour, at what speed between 40 and 80 mph is it most economical to drive? ​

• A) 60 mph
• B) 80 mph
• C) 75 mph
• D) 40 mph
• E) 45 mph

Recognize the significance of global convergence towards a single set of accounting standards.

Calculate plantwide overhead rates.

Identify situations suitable for plantwide overhead rates versus departmental overhead rates or activity-based costing.

Compute departmental overhead rates based on different allocation bases (machine hours, direct labor hours).

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Definitions:

Mean

To determine the arithmetic average, one sums up every number in the collection and divides by the number of elements in the collection.

Standard Deviation

An indicator that measures how much a set of data points spread out or diverge.

Z-Score

An index that quantifies how far a particular value stands from the dataset's mean, measured in units of standard deviations away from the mean.

Z-Scores

A measure that represents the number of standard deviations a data point is from the mean of the dataset.