Exhibit 6-5 The Weight of Items Produced by a Machine Is Normally

question 41

Multiple Choice

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 between 6.4 and 8.9 ounces?

• A)0.1145
• B)0.2881
• C)0.1736
• D)0.4617

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Definitions:

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead expenses as period costs.

Direct Materials

Raw materials directly used in the manufacturing of a product that can be directly traced to that product.

Variable Overhead

Variable overhead refers to the indirect costs of production that fluctuate with the level of output, such as utilities and materials.

Variable Costing

An accounting method that only includes variable production costs in product costs, excluding fixed costs.