Find the Variance of the Probability Distribution for the Histogram

question 253

Multiple Choice

Find the variance of the probability distribution for the histogram:

• A) Var (
• X) = 4.28
• B) Var (
• X) = 4.65
• C) Var (
• X) = 4.2625
• D) Var (
• X) = 4.0125

---

Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.

Machine Hours

A measure of the amount of time a machine is run during a specific period, often used as a basis for allocating manufacturing overhead.

Overapplied

Overapplied refers to a situation where the overhead allocated to products or services exceeds the actual overhead costs incurred, usually in manufacturing settings.

Underapplied

A term often used in accounting to refer to a situation where the allocated costs are less than the actual costs incurred.