Consider the Following to Answer the Question(s) Below

question 14

Multiple Choice

Consider the following to answer the question(s) below:
At a local manufacturing plant, employees must complete new machine set-ups within 30 minutes. New machine set-up times can be described by a Normal model with a mean of 22 minutes and a standard deviation of four minutes.
-What percent of new machine set-ups take more than 30 minutes?

• A) 97.72%
• B) 47.72%
• C) 2.28%
• D) 52.28%
• E) 50%

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Definitions:

Standard Costing

An accounting method where predetermined costs are used for valuing inventory and cost of goods sold, facilitating variance analysis to control costs.

Variable Overhead

Costs that change in proportion to the level of manufacturing or service activities, such as materials and utilities.

Labour Efficiency Variance

It measures the effectiveness of labor usage by comparing the budgeted hours for a set level of production against the actual hours worked, indicating efficiency or inefficiency in labor use.

Static Budget

A budget that does not change or adjust over the period, established at the start of a period and based on a fixed level of activity.