A Small Diner Has One Employee and a Counter with Seating

question 69

Multiple Choice

A small diner has one employee and a counter with seating for 8 customers.The diner does not package food for takeout.Customers arrive at the diner at the rate of 20 per hour (Poisson distributed) .Service times are exponentially distributed and average 24 per hour.Customers that arrive when all seats are taken do not enter the diner.What is the average time a customer spends waiting?

• A)2.5 minutes
• B)3.0 minutes
• C)6.44 minutes
• D)24 minutes

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Definitions:

Processing Department

An organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product.

Equivalent Units

A measure used in cost accounting to express the amount of work done by employees and machines in terms of fully completed units of output.

Ending Inventory

The total value of all inventory, including raw materials, work-in-process, and finished goods, at the end of an accounting period.

Weighted-Average Method

A cost accounting method that averages the costs of goods available for sale for the calculation of the cost of goods sold and ending inventory.