At a Local Manufacturing Plant, Employees Must Complete New Machine

question 20

Multiple Choice

At a local manufacturing plant, employees must complete new machine set ups within 30 Minutes.New machine set-up times can be described by a normal model with a mean of 22 Minutes and a standard deviation of four minutes.The typical worker needs five minutes to Adjust to his or her surroundings before beginning duties.What percent of new machine set Ups are completed within 25 minutes to allow for this?

• A)77.3%
• B)27.3%
• C)22.7%
• D)72.7%
• E)none of the above

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Definitions:

Controllable Variance

The difference between expected and actual costs that managers have the power to influence directly.

Direct Labor Rate Variance

This refers to the difference between the actual cost of labor and the expected (or standard) cost of labor used in producing goods.

Direct Labor

The cost of wages for workers who are directly involved in the production of goods or the delivery of services.

Variable Overhead Efficiency Variance

The difference between the standard cost of variable overheads allocated for actual production and the actual variable overheads incurred, used to assess efficiency in controlling variable overhead costs.