TABLE 9-3 An Appliance Manufacturer Claims to Have Developed a Compact Microwave

question 161

Multiple Choice

TABLE 9-3
An appliance manufacturer claims to have developed a compact microwave oven that consumes a mean of no more than 250 W. From previous studies, it is believed that power consumption for microwave ovens is normally distributed with a population standard deviation of 15 W. A consumer group has decided to try to discover if the claim appears true. They take a sample of 20 microwave ovens and find that they consume a mean of 257.3 W.
-Referring to Table 9-3, the parameter of interest is

• A) the mean power consumption of the 20 microwave ovens.
• B) the mean power consumption of all such microwave ovens.
• C) 250.
• D) 257.3.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, excluding direct material and direct labor costs.

Predetermined Overhead Rate

A rate established in advance to allocate overhead costs to products or services based on a specific activity base.

Machine-Hours

A measure of production time where one machine-hour equals the operation of one machine for one hour.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overhead costs to products.