Production Estimates for August Are as Follows: for Each

question 150

Multiple Choice

Production estimates for August are as follows: For each unit produced, the direct materials requirements are as follows:
The total direct materials purchases (assuming no beginning or ending inventory of material) of materials A and B required for August production is:

• A) $1,080,000 for A; $1,296,000 for B
• B) $1,080,000 for A; $648,000 for B
• C) $1,125,000 for A; $675,000 for B
• D) $1,170,000 for A; $702,000 for B

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Definitions:

Standard Deviation

An indicator of the degree to which values in a dataset spread out or deviate from the average value of the collection.

Mean

The average of a set of numbers, obtained by dividing the sum of the numbers in the set by their quantity.

Cumulative Binomial Probabilities

Cumulative binomial probabilities represent the probability of obtaining a certain number of successes or fewer in a fixed number of independent Bernoulli trials.

Approximate Binomial Distribution

Using a normal distribution to estimate the outcomes of a binomial distribution when the sample size is large and the probability of success is neither very small nor very large.