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Instruction 8-3
A quality control engineer is interested in the mean length of timber poles being cut automatically by machine. The desired length of the insulation is 12 metres. It is known that the standard deviation in the cutting length is 0.15 metres. A sample of 70 cut poles yields a mean length of 12.14 metres. This sample will be used to obtain a 99% confidence interval for the mean length cut by machine.
-Referring to Instruction 8-3,the confidence interval is valid only if the lengths cut are normally distributed.
Machine-Hour
A measure of production output or usage time based on the hours a machine is operated.
Unit Product Cost
The cost assigned to a single unit of product, comprising both variable and fixed manufacturing costs.
Overhead Applied
The amount of manufacturing overhead expenses assigned to a particular job or activity, based on a predetermined rate.
Job P978
A specific job, project, or batch in a costing system assigned with a unique identifier for tracking costs.
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