The Weekly Capacity Measured in Machine Hours for a Small

question 11

Multiple Choice

The weekly capacity measured in machine hours for a small machine shop follows the probability distribution shown below:

Use the following random numbers to simulate weekly capacity for the machine shop for the next five weeks: 93,31,71,8,6.
If the first random number interval begins with 1,then the minimum capacity for the simulated five week period is

• A)560.
• B)520.
• C)440.
• D)400.

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Definitions:

Period Cost

Expenses on the income statement that are not directly tied to the production process, such as administrative salaries and marketing costs.

Supplier

An entity that provides goods or services to another entity, typically a part of the supply chain.

Product Costs

The costs directly associated with the production of goods, including direct labor, direct materials, and manufacturing overhead.

Inventoriable Costs

Costs that are initially recorded as inventory on the balance sheet and recognized as cost of goods sold only when the inventory is sold.