Chuck Is a Quality Inspector on the Assembly Line of a Manufacturing

question 9

Multiple Choice

Chuck is a quality inspector on the assembly line of a manufacturing company. He is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week. He is classified as a direct labor worker.
-Chuck's employer offers fringe benefits that cost the company $5 for each hour of employee time (both regular and overtime) .During a given week,Chuck works 45 hours but is idle for 2 hours due to material shortages.The company treats all fringe benefits as part of manufacturing overhead.The allocation of Chuck's wages and fringe benefits for the week between direct labor cost and manufacturing overhead would be:

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Type II Errors

Occurs in hypothesis testing when the null hypothesis is falsely accepted, meaning that a real effect or difference is missed.

Sampling Distributions

The probability distribution of a statistic obtained from a large number of samples drawn from a specific population.

Statistical Significance

A measure of how likely it is that obtained results are not due to chance, often determined by a p-value.

Systematic Variance

The portion of total variance in a set of data that is attributable to identifiable factors or variables, as opposed to random variance.