Customers Enter the Waiting Line at a Cafeteria on a First-Come

question 30

Multiple Choice

Customers enter the waiting line at a cafeteria on a first-come, first-served basis.The arrival rate follows a Poisson distribution, while service times follow an exponential distribution.If the average number of arrivals is four per minute and the average service rate of a single server is seven per minute, what is the average number of customers waiting in line behind the person being served?

• A)0.76
• B)0.19
• C)1.33
• D)1.67

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Definitions:

Predetermined Overhead Rate

An estimated charging rate used to apply manufacturing overhead costs to produced units, based on a selected activity base.

Predetermined Overhead Rate

A predetermined rate employed to allocate estimated manufacturing overhead costs to products, calculated before the period starts, using projected costs and activity levels.

Direct Labour Hour

A measure of labor that directly contributes to the production of goods, used in calculating labor costs and efficiency.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product, including costs related to indirect materials, indirect labor, and other indirect expenses.