A New Machine Is Set or Calibrated to Fill Tubes

question 122

Multiple Choice

A new machine is set or calibrated to fill tubes of toothpaste at precisely 6.75 ounces. Then, once the machine is running, a sample of 6 tubes is taken every three hours and weighed with the following results: What is the value of A₂, the control limit factor for averages?

• A) 0
• B) 1
• C) 0.577
• D) 0.483

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated for the actual production achieved.

Variable Overhead Rate Variances

The difference between the actual variable overhead incurred and the standard cost allocated, based on actual production activity.

Indirect Labor

Costs associated with employees who are not directly involved in the production of goods or services, such as maintenance and clerical staff.

Precision Drills

Specialized tools or equipment designed for creating holes with exact dimensions and tolerances.