A Quality Control Manager at a Bottling Plant Wishes to Know

question 97

Essay

A quality control manager at a bottling plant wishes to know if the median amount of juice in their 473 mL bottles actually falls below 473 mL.The amounts of juice in 34 randomly selected juice bottles are measured.Of the 34 bottles,21 contained less than 473 mL,4 contained exactly 473 mL,and 9 contained more 473 mL.Perform a sign test to determine if the median amount is less than 473 mL.Use a 5% level of significance.

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Definitions:

Standard Costing System

A cost accounting system that uses standard costs for product costs and measures variances to actual costs for performance evaluation.

Overhead Volume Variance

The difference between the expected (budgeted) overhead costs and the actual overhead allocated based on actual volume of production.

Materials Price Variance

The difference between the actual cost of materials used in production and the budgeted cost, based on standard pricing.

Total Materials Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.