Quality Standard: Mean Weight per Production Run Double Bran Bits Honey Wheat Squares Sugar King Pops 17.97 ounces 14 ounces 16.02 ounces Actual Mean Weight per Production Run (Ounces) Production Run Double Bran Bits Honey Wheat Squares Sugar King Pops 18.23 14.11 15.83 18.14 14.13 16.11 3 18.22 13.98 13.89 16.24 15.69 4 18.30 5 18.10 18.05 13.91 14.01 15.95 15.50 15.86 16.23 17.84 13.94 17.66 13.99 17.60 14.03 16.15 16.60 10 17.52 13.97 Standard Deviation 0.28 0.16 0.21

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Harvest Cereals produces a wide variety of breakfast products. The company’s three best-selling breakfast cereals are Double Bran Bits, Honey Wheat Squares, and Sugar King Pops. Each box of a particular type of cereal is required to meet predetermined weight specifications, so that no single box contains more or less cereal than another. The company measures the mean weight per production run to determine if there are variances over or under the company’s specified upper- and lower-level control limits. A production run that falls outside of the specified control limit does not meet quality standards and is investigated further by management to determine the cause of the variance. The three Harvest breakfast cereals had the following weight standards and production run data for the month of March:

Q.Present control charts for each of the three breakfast cereals for March. What inferences can you draw from the charts? 3. What are the costs of quality

Quality Standard: Mean Weight per Production Run
Double Bran Bits
Honey Wheat Squares
Sugar King Pops
17.97 ounces
14 ounces
16.02 ounces
Actual Mean Weight per Production Run (Ounces)
Production Run
Double Bran Bits Honey Wheat Squares Sugar King Pops
18.23
14.11
15.83
18.14
14.13
16.11
3
18.22
13.98
13.89
16.24
15.69
4
18.30
5
18.10
18.05
13.91
14.01
15.95
15.50
15.86
16.23
17.84
13.94
17.66
13.99
17.60
14.03
16.15
16.60
10
17.52
13.97
Standard Deviation
0.28
0.16
0.21
Transcribed Image Text:Quality Standard: Mean Weight per Production Run Double Bran Bits Honey Wheat Squares Sugar King Pops 17.97 ounces 14 ounces 16.02 ounces Actual Mean Weight per Production Run (Ounces) Production Run Double Bran Bits Honey Wheat Squares Sugar King Pops 18.23 14.11 15.83 18.14 14.13 16.11 3 18.22 13.98 13.89 16.24 15.69 4 18.30 5 18.10 18.05 13.91 14.01 15.95 15.50 15.86 16.23 17.84 13.94 17.66 13.99 17.60 14.03 16.15 16.60 10 17.52 13.97 Standard Deviation 0.28 0.16 0.21
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