Exhibit 10.2 the Following Questions Are Based on the Problem Description and Description

question 2

Multiple Choice

Exhibit 10.2
The following questions are based on the problem description and the output below.
A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful (Group 1) , marginally successful (Group 2) or not-successful (Group 3) in their graduate studies. The officer has data on 20 current students, 7 successful (Group 1) , 6 marginally successful (Group 2) and 7 not successful (Group 3) . ​ ​ ​ ​
-Refer to Exhibit 10.2. What number of observations is classified incorrectly?

• A) 19
• B) 20
• C) 7
• D) 1

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Definitions:

Machine Hour

A measure of the amount of time a machine is operated, used as a basis for allocating machine-related costs to products.

Full Cost

The sum of all costs incurred in the production of a product or service.

Fixed Overhead

This refers to the consistent, non-variable costs incurred by a business, regardless of its level of production or sales volumes.

Variable Overhead

Costs that vary with the level of production output, such as utilities for machines and indirect materials.