A Daily Mail Is Delivered to Your House Between 1:00

question 31

Multiple Choice

A daily mail is delivered to your house between 1:00 p.m. and 5:00 p.m. Assume delivery times follow the continuous uniform distribution. Determine the percentage of mail deliveries that are made after 4:00 p.m.

• A) 25%
• B) 33.3%
• C) 37.5%
• D) 27.5%

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Definitions:

Standard Costs

Predetermined costs assigned to goods and services, used as target costs or benchmarks to compare with actual costs in order to manage and control costs.

Total Direct Labor Variance

The difference between the actual cost of direct labor used to produce goods and the standard cost of direct labor expected for those goods.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Hours

Units of time, each equal to 60 minutes, used often as a measure for billing, labor, or scheduling.