COST MANAGEMENT: CONNECT ACCESS CUSTOM
COST MANAGEMENT: CONNECT ACCESS CUSTOM
8th Edition
ISBN: 9781264045754
Author: BLOCHER
Publisher: MCG CUSTOM
Question
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Chapter 17, Problem 42E

1.

To determine

Calculate the approximate value of k using Taguchi quality loss function (QLF).

2 a. and b.

To determine

Calculate the estimated quality loss for each of the observed measurements and calculate the expected loss per unit (to 2 decimal places) for the production process as a whole.

3 a.

To determine

Calculate the square of the deviation of the mean of the actual x-values from the targeted value, T.

3 b.

To determine

Compute the variance of the observed values of the quality characteristic x around the mean value of x.

3 c.

To determine

Calculate the expected (average) per unit loss of the process.

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Caddy Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 4 yards at $5.75 per yard. Direct labor of 3 hours at $19 per hour. Overhead applied per sleeping bag at $20. In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.10 per yard. The labor used was 11,700 hours at an average rate of $18.50 per hour. The actual overhead spending was $96,200. Determine the total materials variance.
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