Consider the Following Work Breakdown Structure

question 7

Multiple Choice

Consider the following work breakdown structure:
What is the estimated standard deviation in the time for activity E?

• A) 2 days
• B) 3 days
• C) 4 days
• D) 16 days
• E) 24 days

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Definitions:

Standard Labor Hours

The estimated amount of time expected to produce a unit of output under normal conditions.

Overhead

Indirect costs related to the day-to-day running of a business, excluding direct costs like labor and materials.

Unfavorable Volume Variance

A cost variance that occurs when the actual volume of production or sales negatively deviates from expected volumes, often leading to higher costs or lower profits.

Failure To Maintain

A situation where the required level of upkeep, documentation, or regulatory compliance has not been sustained.