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Exhibit 6-5
The weight of items produced by a machine is normally distributed with a mean of 8 ounces and a standard deviation of 2 ounces.
-Refer to Exhibit 6-5. What percentage of items will weigh at least 11.7 ounces?
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a certain activity.
Variable Manufacturing Overhead
Costs that fluctuate with production volume, such as utilities and materials used in the production process.
Direct Labor-Hours
The total number of hours worked by employees who are directly involved in the manufacturing process.
Fixed Manufacturing Overhead
Costs in manufacturing that do not change with the level of production output, such as rent, salaries of permanent staff, and depreciation of factory equipment.
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