Consider the Following to Answer the Question(s) Below

question 19

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.

-What is the value of the mode in this case?

• A) 1
• B) 2
• C) 3
• D) 4
• E) Cannot be determined with the information available.

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Definitions:

Overhead Rate

A calculation used in cost accounting to allocate indirect costs to products or services, typically expressed as a percentage or rate per unit of activity.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated in advance based on estimated costs and activity levels.

Machine-Hours

A measure of the amount of time a machine is operated, often used as a basis for allocating manufacturing overhead costs in job-order and process costing systems.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including costs for utilities, rent, and maintenance, that are not directly tied to production.