SCENARIO 15-3
a Quality Control Analyst for a Light Bulb

question 188

Multiple Choice

SCENARIO 15-3
A quality control analyst for a light bulb manufacturer is concerned that the time it takes to produce a batch of light bulbs is too erratic.Accordingly, the analyst randomly surveys 10 production periods each day for 14 days and records the sample mean and range for each day.
$\begin{array}{rcr}\text { Day }& \bar{X} \text { (inminutes) } &R\\1 & 58.5 & 5.1 \\2 & 47.6 & 7.8 \\3 & 64.3 & 6.1 \\4 & 60.6 & 5.7 \\5 & 63.7 & 6.2 \\6 & 57.5 & 6.0 \\7 & 55.0 & 5.4 \\8 & 54.9 & 6.1 \\9 & 55.0 & 5.9 \\10 & 62.7 & 5.0 \\11 & 61.9 & 7.1 \\12 & 60.0 & 6.5 \\13 & 58.3 & 5.9 \\14 & 52.0 & 5.2\end{array}$
-Referring to SCENARIO 15-3, suppose the analyst constructs an X chart to see if the production process is in-control.Which expression best describes this chart?

• A)In-control
• B)Increasing trend
• C)Decreasing trend
• D)Individual outliers

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production output, including rent, salaries of permanent staff, and depreciation of factory equipment.

Production Volume

The total quantity of goods or products that a factory or production system can produce over a specific period.

Sales Volume

Refers to the total number of units sold within a given period.