Farber,Inc The Total Amount of the Administrative Department's Cost That Would

question 150

Multiple Choice

Farber,Inc.,has four departments.The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space.Data for these departments follows:
$$\begin{array} { l r r r r } \text { Operating costs } & \frac { \text { Adrrin. } } { \$ 30,000 } & \frac { \text { Maintenance } } { \$ 15,000 } & \frac { \text { Assernbly } } { 570,000 } & \frac { \text { Packaging } } { \$ 45,000 } \\\text { No. of ermployees... } && 2 & 6 & 4 \\\text { Sq. ft. of space..... } &&& 2,000 & 3,000\end{array}$$ The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is:

• A)$ 4,800.
• B)$12,000.
• C)$10,000.
• D)$18,000.
• E)$13,000.

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Definitions:

Sampling Distribution

An outcome distribution of a statistic, created by sampling extensively from a designated population.

Standard Error

A measure of the statistical accuracy of an estimate, reflecting the standard deviation of the sampling distribution of a statistic.

Sampling Distribution

The distribution of a statistic (e.g., mean) computed from samples of a specific size drawn from a particular population.

Sampling Distribution

The probability distribution of a statistic obtained through a large number of samples drawn from a specific population.