Jack Joyner, Director of Quality Control at Covington Castings (CC)

question 42

Multiple Choice

Jack Joyner, Director of Quality Control at Covington Castings (CC) , is designing a c chart to monitor the number of nonconformances per aluminum casting produced at CC.The total number of nonconformances for 26 castings is 91.The lower control limit for Jack's c chart is ___________.

• A)1.37
• B)-2.11
• C)3.50
• D)-1.00
• E)0.00

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, based on a set activity measure.

Raw Materials

Basic materials that are used in the production process to manufacture finished goods.

Finished Goods

Finished goods awaiting sale and not yet delivered to end-users.

Work in Process Inventory

Represents the total cost of unfinished goods currently being manufactured.