SCENARIO 18-8
Recently, a University Switched to a New Type

question 129

Short Answer

SCENARIO 18-8
Recently, a university switched to a new type of computer-based registration. The registrar is
concerned with the amount of time students are spending on the computer registering under the new
system. She decides to randomly select 8 students on each of the 12 days of the registration and
determine the time each spends on the computer registering. The range, mean, and standard deviation
of the times required to register are in the table that follows. $$\begin{array} { r l r l } \underline { \text { Day } } & \text { Range } & \underline { \text { Mean } } & \underline { \text { Std.Dev. } } \\1 & 10 & 5.250 & 3.4949 \\2 & 31 & 15.250 & 10.3060 \\3 & 13 & 20.375 & 4.9262 \\4 & 21 & 22.875 & 8.3911 \\5 & 35 & 8.500 & 11.3767 \\6 & 18 & 7.875 & 6.9372 \\7 & 25 & 11.250 & 8.5815 \\8 & 30 & 7.875 & 9.5235 \\9 & 17 & 10.250 & 6.3640 \\10 & 22 & 9.500 & 7.8740 \\11 & 27 & 7.875 & 8.7086 \\12 & 26 & 12.875 & 9.3723\end{array}$$
-Referring to Scenario 18-8, an R chart is to be constructed for the time required to register. One
way to create the upper control limit involves multiplying the mean of the sample ranges by $D _ { 4 }$ .
For this data set, the value of $D _ { 4 }$ is ________.

Identify and describe the difference between plantwide overhead rate, departmental overhead rate, and activity-based costing (ABC) methods.

Recognize the advantages and disadvantages of using a plantwide overhead rate for overhead cost allocation.

Understand the concept of cost pools and how they are used in overhead cost allocation.

Acknowledge the influence of cost assignments on management's pricing and product decisions.

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Definitions:

Normal Accidents

A theory that predicts that in complex technological systems, accidents are inevitable due to the unpredictable interaction of multiple failures.

Human Subjectivity

The condition or quality of being subjective, referring to how individuals' perspectives, emotions, and experiences are uniquely their own and influence their understanding of the world.

Technology Failure

Events or conditions where technological systems do not operate as intended, leading to negative outcomes or disruptions.

Acid Rain

Acid rain refers to precipitation that is significantly more acidic than normal, resulting from atmospheric pollution, especially the emission of sulfur and nitrogen compounds.