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SCENARIO 12-10
One Criterion Used to Evaluate Employees in the Assembly

question 47

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SCENARIO 12-10
One criterion used to evaluate employees in the assembly section of a large factory is the number of defective pieces per 1,000 parts produced.The quality control department wants to find out whether there is a relationship between years of experience and defect rate.Since the job is repetitious, after the initial training period any improvement due to a learning effect might be offset by a loss of motivation.A defect rate is calculated for each worker in a yearly evaluation.The results for 100 workers are given in the table below.  Years Since Training Period <1 Year 14 Years 59 Years  Defect Rate:  High 699 Average 91923 Low 7810\begin{array} { r r | | c c c } & & { \text { Years Since Training Period } } \\& & < 1 \text { Year } & 1 - 4 \text { Years } & 5 - 9 \text { Years } \\\hline \hline { \text { Defect Rate: } } & \text { High } & 6 & 9 & 9 \\& \text { Average } & 9 & 19 & 23 \\&\text { Low } & 7 & 8 & 10\end{array}
-Referring to Scenario 12-10, which test would be used to properly analyze the data in this experiment to determine whether there is a relationship between defect rate and years of experience?

Comprehend the accounting treatment of normal and abnormal spoilage in cost accounting.
Grasp the concept of equivalent units and how they are used in process costing, including differences between weighted average and FIFO methods.
Understand the rationale behind using predetermined overhead rates in costing.
Identify the characteristics of products that dictate the selection of a specific costing system.

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