The Time of a Call to a Technical Support Line

question 133

Multiple Choice

The time of a call to a technical support line is uniformly distributed between 2 and 10 minutes. What are the mean and variance of this distribution?

• A) 6 minutes and 2.3094 (minutes) 2
• B) 6 minutes and 5.3333 (minutes) 2
• C) 6 minutes and 5.3333 minutes
• D) 8 minutes and 2.3094 minutes

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Definitions:

Unit Product Cost

The overall expense involved in creating one unit of a product, encompassing direct materials, direct labor, and distributed overhead costs.

Absorption Costing

An accounting method that includes all manufacturing costs (both variable and fixed) in the cost of a product.

Variable Costing

An accounting method that includes only variable costs in product cost calculations and treats fixed costs as period costs.

Unit Product Cost

The cost associated with producing a single unit of product, which includes direct materials, direct labor, and manufacturing overhead expenses.