Assuming That Actual Activity Turns Out to Be the Same

question 87

Multiple Choice

Assuming that actual activity turns out to be the same as expected activity,the total amount of overhead cost allocated to Product X would be closest to:

• A) $196,800.
• B) $234,000.
• C) $272,600.
• D) $274,000.

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Definitions:

Uniform Probability Distribution

A distribution in which all outcomes are equally likely to occur within a certain range.

Expected Value

The long-run average value of repetitions of the same experiment or random trial.

Triangular Distribution

A probability distribution with a shape formed by a triangle, which is specified by a minimum, a maximum, and a mode value.

Expected Value

The weighted average of all possible values of a random variable, taking into account their probabilities.