Consider the Following to Answer the Question(s) Below

question 7

Multiple Choice

Consider the following to answer the question(s) below:
The number of clients arriving at a bank machine is Poisson distributed with an average of 2 per minute. For a 5 minute period,
-What is the probability that no more than 2 customers will arrive in a 5 minute period?

• A) 0.0005
• B) 0.1246
• C) 0.0028
• D) 0.6767
• E) The answer cannot be determined with the given information.

---

Definitions:

Underapplied Overhead

A situation where allocated overhead costs are less than the actual overhead incurred.

Job-Order Costing

A costing method used to calculate the costs associated with producing specific orders or batches, where the costs for materials, labor, and overhead are compiled and assigned to each job individually.

Overapplied Overhead

A situation where the overhead costs allocated to products or services exceed the actual overhead costs incurred.

Underapplied Overhead

Underapplied overhead occurs when the allocated amount of overhead costs in a costing system is less than the actual overhead incurred.