Exhibit 13.1 The Following Questions Are Based on the Output Below

question 51

Multiple Choice

Exhibit 13.1
The following questions are based on the output below.
A store currently operates its service system with 1 operator. Arrivals follow a Poisson distribution and service times are exponentially distributed. The following spreadsheet has been developed for the system.
-The service times for a grocery store with one checkout line have a mean of 3 minutes and a standard deviation of 20 seconds. Customer arrivals at the checkout stand follow a Poisson distribution. What type of system is it?

• A) M/G/1
• B) M/D/1
• C) G/M/1
• D) M/M/1

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Definitions:

Variable Manufacturing Overhead

Expenses that vary with production volume, such as utilities and materials.

Job Cost

The total expense calculated for a specific job or project, including materials, labor, and overhead.

Unit Product Cost

The total cost to produce one unit of product, including labor, materials, and overhead.

Predetermined Overhead Rate

A rate calculated prior to the accounting period that is used to allocate overhead costs to products or job orders, based on estimated overhead costs and an allocation base.