Cacioppo corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. at the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 66,000 labor-hours. the estimated variable manufacturing overhead was $7.45 per labor-hour and the estimated total fixed manufacturing overhead was $1,760,220. the actual labor-hours for the year turned out to be 63,800 labor-hours. the predetermined overhead rate for the recently completed year was closest to:

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?