Bottomline Ink, a Forms Managementcompany, Fills 100 Orders a Day

question 63

Multiple Choice

Bottomline Ink, a forms managementcompany, fills 100 orders a day with a 2% error rate in the completed orders. Assume this to be a binomial distribution. What is the standard deviation for this distribution?

• A) 0.02
• B) 1.4
• C) 2
• D) There is no standard deviation for this type of distribution.

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Definitions:

Overapplied Overhead

A situation where the actual manufacturing overhead costs are less than the overhead costs applied to production, resulting in a variance.

Factory Overhead

All indirect costs associated with manufacturing a product, including the costs of running the factory but excluding direct materials and direct labor.

Journalize

The process of recording transactions in a company's journal as part of the accounting cycle.

April

The month that comes fourth in the Gregorian calendar year.