The Following Distribution Table Represents Preferences for Two Types of Cereals

question 61

Multiple Choice

The following distribution table represents preferences for two types of cereals by 2000 boys and girls. Determine the probability that the person is a boy, given that the person likes Fruity Cereal.

• A) 500/1,000
• B) 500/2,000
• C) 1,200/2,000
• D) 500/1,200

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Definitions:

Direct Labor-Hours

The total number of labor hours spent by workers directly involved in the production process.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a selected activity base.

Activity-Based Costing

A pricing strategy that attributes overhead and indirect expenses to associated goods and services by determining cost drivers.

Traditional Costing Method

An accounting approach that assigns manufacturing overhead costs to products based on volume-related measures such as direct labor hours or machine hours.