At Eady Corporation, Maintenance Is a Variable Overhead Cost That

question 317

Multiple Choice

At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for July showed that actual maintenance costs totaled $9,870 and that the associated rate variance was $300 unfavorable. If 5,500 machine-hours were actually worked during July, the standard maintenance cost per machine-hour was:

• A) $1.79 per machine-hour
• B) $1.85 per machine-hour
• C) $1.74 per machine-hour
• D) $1.90 per machine-hour

---

Definitions:

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used in Z-tests and other statistical analyses.

Symmetry

A characteristic where an object or design is made up of exactly similar parts facing each other or around an axis.

Unit of Measurement

A definite magnitude of a quantity, defined and adopted by convention or by law, that is used as a standard for measurement of the same quantity.

Modality

The number of peaks or high points in the frequency distribution of a dataset.