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Control Limits During the last 6 weeks, the actual costs of labor for Solsana Company were as follows: Week 1 Week 4 $45,600 Week 2
Control Limits During the last 6 weeks, the actual costs of labor for Solsana Company were as follows: Week 1 Week 4 $45,600 Week 2 $38,500 $40,000 $42,000 Week 5 $48,000 Week 3 Week 6 $51,000 The standard materials cost for each week was $40,000 with an allowable deviation of 5,000. Required: Review the graphs below. Control Chart $55,000 $50,000 $45,000 Actual Costs $40,000 $35,000 $30,000 0 1 2 3 Week 4 5 6 7 $70,000 $65,000 $60,000 Upper control limit $55,000 $50,000 Lower control limit $45,000 $40,000 + 12 $70,000 $65,000 $60,000 Upper control limit $55,000 $50,000 Lower control limit $45,000 $40,000 d. $70,000 $65,000 $60,000 Upper control $55,000 $50,000 Lower control limit $45,000 $40,000 + 1 a. Select the letter adjacent to the graph which represents the actual costs over time against the upper and lower limits. b. The variances that exceed the upper limit of should be investigated
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