QUESTION:

Requirement 1. Compute two variances that help determine whether the time spent on inspections was more or less than expected. Begin by calculating the following amounts for the inspection hours. (Enter your answers to one decimal place, X.X.) Actual Pounds Standard Pounds Inspected Actual Hours Inspected : Budgeted for Actual Output : Budgeted For Inspection Pounds per Hour Pounds per Hour 200 195 240 Now compute the efficiency and quantity variances for time spent on inspections. (Enter your answers to one decimal place. X.X. Label the variance as favorable (F) or unfavorable (UJ.) Efficiency variance 5 hours C Quantity variance 45 hours F Requirement 2. Compute two variances that can be used to evaluate the percentage of the food that fails the inspection. Calculate the following amounts for the pounds that failed inspection. Actual Pounds Standard Pounds Inspected Actual Pounds Inspected * Budgeted for Actual Output * Budgeted Failing Inspection Inspection Failure Rate Inspection Failure Rate 9,725 10.725 13,200 Finally compute the efficiency and quantity variances for pounds of food that fail inspection. (Label the variance as favorable (F) or unfavorable (U).) Efficiency variance 1,000 Ibs. F Quantity variance 2,475 bs. FShannon's Kettle Potato Chips produces gourmet chips distributed to chain sub shops throughout California. To ensure that their chips are of the highest quality and have taste appeal, Shannon has a rigorous inspection process. i (Click the icon to view additional information.) Read the requirements. - X Require More info less than expected. Begin by For quality control purposes, Shannon has a standard based on the number of pounds of chips inspected per hour and the number of pounds that pass or fail the inspection. Shannon expects that for every 5,500 pounds of chips produced, 1, 100 pounds of chips will be inspected. Inspection of 1, 100 pounds of chips should take 1 hour. Shannon also expects that 8% of the chips inspected will fail the inspection. During the month of May, Shannon produced 1,282,500 pounds of chips and inspected 247,500 pounds of chips in 195 hours. Of the 247,500 pounds of chips inspected, 15,350 pounds of chips failed to pass the inspection. Print Done