Jasmine Morron Is Examining a Statistical Control Chart on the Recent

question 41

Multiple Choice

Jasmine Morron is examining a statistical control chart on the recent cost report of her manufacturing company. Jasmine is focusing on one specific process, the labour efficiency variance of polishing. She determines that the critical values for this process are $1000. The labour efficiency variances for the last 6 months were all favourable: $500F (July) , $600F (August) , $750F (September) , $880F (October) , $900F (November) and $990F (December) . Jasmine decides not to investigate these variances. Do you agree with her decision?

• A) Yes, because all the variances are below the critical value.
• B) Yes, because all the variances are below the critical value and are favourable.
• C) No, because there is a trend of the variances increasing steadily over time.
• D) No, she should investigate the variances in November and December because they are both within 10% of the critical value.

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Definitions:

Kingpin

A kingpin is a critical component in the steering mechanism of a vehicle, connecting the steer axle to the wheels and enabling pivoting for steering.

Welded

Refers to the process of joining metal parts together by melting the pieces and adding a filler material to form a strong bond upon cooling.

Bolted

indicates a method of assembling or securing components using bolts, which are types of fasteners designed to hold materials together or to position them.

Upper Coupler

The kingpin deck plate on a trailer that rides on the fifth wheel on a tractor or lead trailer. Built into the subframe of the trailer. Kingpin may be welded or bolted (riveted in much older trailers) into the upper coupler assembly.