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ACCA Applied Knowledge · Management Accounting · Summarising and analysing data

Monthly overhead cost data of Kirov Co are grouped into a frequency table with class intervals 0 to under 10, 10 to under 20, 20 to under 40, with frequencies 8, 12 and 20 respectively. When drawing a histogram, the class 20 to under 40 is twice as wide as the standard class width of 10. What is the correct frequency density (height) for the 20 to under 40 class, using a standard width of 10?

The height is 10. In a histogram with unequal class widths the area represents frequency, so frequency is divided by the number of standard widths. The class is two standard widths wide, so 20 divided by 2 gives a frequency density of 10.

  1. A10Correct
  2. B20
  3. C5
  4. D40

Explanation

In a histogram with unequal class widths, area represents frequency, so height is frequency divided by the class width in standard units. The class has width 2 standard units, so height = 20/2 = 10. Using 20 ignores the unequal width; 5 divides by 4 incorrectly; 40 multiplies instead of dividing.

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