A Graduate Research Assistant "Moonlights" at the Short Order Counter

question 63

Multiple Choice

A graduate research assistant "moonlights" at the short order counter in the student union snack bar in the evenings. He is considering asking for help taking orders, but needs to convince the management that they should hire another student. Because he is taking a simulation class, he thinks it may be the perfect way to convince management to hire more help if he can show that customers have to wait a long time. When a customer arrives, he takes their order and their payment, prepares the food, gives it to the customer, and then takes the order from the next person in line. If someone arrives while he's cooking an order, they have to wait until he's completed the current order. He has simulated 5 orders.


$$\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Customer } \\\text { Number }\end{array} & \begin{array} { c } \text { Time of } \\\text { Arrival }\end{array} & \begin{array} { c } \text { Time } \\\text { Order } \\\text { Taken }\end{array} & \begin{array} { c } \text { Order } \\\text { Prep } \\\text { Time }\end{array} & \begin{array} { c } \text { Customer } \\\text { Receives } \\\text { Food }\end{array} & \begin{array} { c } \text { Customer } \\\text { Wait } \\\text { Time }\end{array} \\\hline 1 & 2 & 2 & 4 & 6 & 0 \\\hline 2 & 14 & 14 & 7 & & \\\hline 3 & 19 & & 6 & & \\\hline 4 & 28 & & 8 & & \\\hline 5 & 33 & & 4 & & \\\hline\end{array}$$
-Average customer waiting time is:

• A) 1 minute
• B) 2 minutes
• C) 2.5 minutes
• D) 3 minutes

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Definitions:

Standard Costing Systems

A cost accounting system that estimates the cost of products or services by assigning expected costs for materials, labor, and overhead to the actual production volumes.

Variances

The difference between expected and actual performance, costs, or revenues, often analyzed in budgeting and accounting to manage and improve financial performance.

Direct Labour Costs

Expenses associated with the labor directly involved in the production of goods or services.

Sales Price Variance

The difference between the actual sales revenues received and the expected revenues at standard selling prices.