A Salon and Spa Chain Periodically Analyzes Its Service Times

question 24

Multiple Choice

A salon and spa chain periodically analyzes its service times to check for variation in service processes. To do this, it uses R-charts. Seven samples, each containing observed service time with three different customers, were collected. The average mean and the average range of the service times are found to be 9.924 and 0.957, respectively. If D 4 for the R-chart is 1.924, the upper control limit ( ) for the R-chart will be:

• A) less than or equal to 1.0.
• B) greater than 1.0 but less than or equal to 1.5.
• C) greater than 1.5 but less than or equal to 2.0.
• D) greater than 2.0 but less than or equal to 2.5.

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Definitions:

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of goods.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific products or projects based on their consumption of resources.

Direct Labor-Hours

The total hours worked directly on manufacturing a product or providing a service.

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of specific goods or services.