Sylvia'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, Sylvia has a rigorous inspection process. A (Click the icon to view additional information.) Read the requirements More Info 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.) For quality control purposes, Sylvia has a standard based on the pounds of chips inspected per hour and the number of pounds that pass or fail the inspection. Sylvia expects that for every 7,500 pounds of chips produced, 1,500 pounds of chips will be inspected. Inspection of 1,500 pounds of chips should take 1 hour. Sylvia also expects that 6% of the chips inspected will fail the inspection. During the month of May, Sylvia produced 1,575,000 pounds of chips and inspected 285,000 pounds of chips in 195 hours. Of the 285,000 pounds of chips inspected, 16,100 pounds of chips failed to pass the inspection. Standard Pounds Inspected Actual Pounds for Actual Output/Budgeted Actual Hours Inspected/Budgeted For Inspection Pounds per Hour Pounds per Hour 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 (U).) Efficiency variance hours Print Done Quantity variance hours 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. Requirements Standard Pounds Inspected Actual Pounds Inspected x Budgeted Actual Pounds for Actual Output x Budgeted Failing Inspection 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.) Inspection Failure Rate Inspection Failure Rate Finally compute the efficiency and quantity variances for pounds of food that fail inspection. (Label the variance as favorable (F) or unfavorable (U).) 2. Compute two variances that can be used to evaluate the percentage of the chips that fails the inspection. Efficiency variance Ibs Quantity variance Ibs Print Done