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:

Factory Overhead Applied

The assignment of all indirect costs of manufacturing to the goods produced, including costs such as utilities and maintenance for the manufacturing plant.

Actual Costs

The exact expenses incurred during the production or execution of a project or operation.

Underapplied

A situation in cost accounting where the allocated indirect costs are less than the actual indirect costs incurred, resulting in a discrepancy.

Depreciation Expense

It represents the allocation of the cost of tangible assets over its useful life, reflecting the use and wear and tear of the asset.