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Sara'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
Sara'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, Sara has a rigorous inspection process. (Click the icon to view additional information.) Read the requirements. 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.) More info For quality control purposes, Sara 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. Sara 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. Sara also expects that 2% of the chips inspected will fail the inspection. During the month of May, Sara produced 1,210,000 pounds of chips and inspected 247,500 pounds of chips in 215 hours. Of the 247,500 pounds of chips inspected, 3,750 pounds of chips failed to pass the inspection. Requirements 1. Compute two variances that help determine whether the time spent on inspections was more or less than expected. (Follow a format similar to the one used for the variable overhead spending and efficiency variances, but without prices.) 2. Compute two variances that can be used to evaluate the percentage of the chips that fails the inspection
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