Answer the Following Questions Using the Information Below:
Mark Papers

question 17

Multiple Choice

Answer the following questions using the information below:
Mark Papers employs 15 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours. Following is information for 2014:
$\begin{array}{lcc}&\text { Budget }&\text { Actual }\\\text { Indirect costs } & \$ 200,000 & \$ 300,000 \\\text { Annual salary of each employee } & \$ 100,000 & \$ 110,000 \\\text { Annual salary of each trainee } & \$ 25,000 & \$ 30,000 \\\text { Total professional labor-hours } & 50,000 \mathrm{dlh} & 60,000 \mathrm{dlh}\end{array}$
-How much should a client be billed in a normal costing system when 1,000 professional labor-hours are used?

• A) $33,600
• B) $29,800
• C) $39,000
• D) $41,000

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Definitions:

Process Distribution

The statistical distribution that characterizes the outputs or results of a process, helping to understand its behavior and variation.

Assignable Variation

Variation in a process that is caused by specific, identifiable factors, as opposed to random or inherent variability.

Standard Errors

Standard errors measure the statistical accuracy of an estimate, indicating the variability of sampling distributions of a statistic.

Sample Means

The arithmetic average of a set of values chosen from a larger population for the purpose of statistical analysis.