First Use Front-End Rounding to Write an Estimate of the Answer

question 67

Multiple Choice

First use front-end rounding to write an estimate of the answer, and then add the decimals to obtain an exact answer.
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• A)Estimate: 59, exact: 65.67
• B)Estimate: 59, exact: 64.67
• C)Estimate: 59, exact: 55.67
• D)Estimate: 60, exact: 66.67

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Definitions:

Machine-Hours

Machine-hours measure the amount of time a piece of machinery is in operation and is often used as a basis for allocating manufacturing overhead.

Maintenance Cost

Expenses incurred in keeping property, equipment, or machinery in efficient operating condition, including both preventive and corrective measures.

Relevant Range

The span of activity levels within which the assumptions made about cost behavior in cost-volume-profit analysis remain valid.

Average Costs

The total costs (fixed and variable) divided by the total output production, giving a per unit cost of production.