Table J.8 Auto Data Produces Custom Engineering Testing Equipment. the Following Six

question 33

Multiple Choice

Table J.8
Auto Data produces custom engineering testing equipment. The following six jobs are currently in the design department. The time since each one arrived, the processing time, and the due date are shown below. All times are expressed in terms of days. Let now be the beginning of Day 1.

-Using the information in Table J.8 and the EDD rule, what is the average days past due?

• A) fewer than or equal to 8.0 days
• B) greater than 8.0 days but fewer than or equal to 9.5 days
• C) greater than 9.5 but fewer than or equal to 11.0 days
• D) greater than 11.0 days

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Definitions:

Standard Cost System

An accounting method that uses cost estimates for labor and materials to plan a budget and measure performance.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent, salaries, and insurance associated with manufacturing.

Variances

Differences between expected and actual performance in business metrics such as costs, revenues, and production levels.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing goods or providing services.