A Work Sampling Study Requires an Acceptable Error Level of ±

question 15

Essay

A work sampling study requires an acceptable error level of ± 10 percent and 95 percent confidence.
(a) What is the required sample size if the sample proportion busy is as large as 50 percent?
(b) What is the required sample size if the sample proportion busy is estimated to be about 20 percent?

---

Definitions:

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual products or job orders, calculated before the period begins based on estimated costs and activity levels.

Machine-Hours

A measure of production time, indicating the total hours that machines have been operating during a given period.

Fixed Manufacturing Overhead

The total of all costs that remain constant regardless of the level of production within a certain range.

Machining Department

A division within a manufacturing facility where machining processes such as cutting, drilling, or shaping are performed.