Consider the Following Probability Distribution

question 133

Multiple Choice

Consider the following probability distribution. The variance is ____.

• A) 0.89
• B) 0.94
• C) 1.65
• D) 1.90

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Definitions:

Variable Manufacturing Overhead

Manufacturing costs that vary in total directly with changes in production volume, such as utility costs or raw material consumptions.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Actual Hours

The real number of hours worked, as opposed to planned or scheduled hours.

Standard Cost System

An accounting method that uses cost estimates for materials, labor, and overhead to control business costs.