For Any Normally Distributed Random Variable with Mean μ and Standard

question 114

Multiple Choice

For any normally distributed random variable with mean μ and standard deviation σ, the proportion of the observations that fall outside the interval [μ - σ, μ + σ] is the closest to ________.

• A) 0.0466
• B) 0.3174
• C) 0.8413
• D) 0.1687

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, calculated before the costs are actually incurred.

Labor-Hour

A unit of measure representing one hour of work by an employee, often used in costing and budgeting processes.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard variable overhead allocated, based on the actual input of the allocation base.

Fixed Component

A cost that does not change with the increase or decrease in the amount of goods or services produced or sold.