Consider the Following to Answer the Question(s) Below

question 11

Multiple Choice

Consider the following to answer the question(s) below:
Vending machines on a college campus offer a variety of drinks. The purchasing agent believes that each type of drink is equally preferred by students and consequently orders equal quantities. The number of drinks sold from vending machines on this campus for the last six months is shown in the following table.

-At α = 0.05

• A) We reject the null hypothesis.
• B) We fail to reject the null hypothesis.
• C) We conclude that the purchasing agent was not correct.
• D) We reject the null hypothesis and conclude that the purchasing agent was not correct.
• E) We fail to reject the null hypothesis and conclude that the purchasing agent was not correct.

---

Definitions:

Direct Labor-Hours

The aggregate amount of time spent by staff members directly participating in the creation process.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to each unit of production, based on an activity driver.

Fixed Manufacturing Overhead

Costs in the manufacturing process that remain constant regardless of the production volume, including equipment depreciation and building lease expenses.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production of goods or services.