Statistical quality control. 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:
Quality Standard: Mean Weight per Production Run
Double Bran Bits | Honey Wheat Squares | Sugar King Pops |
17.97 ounces | 14 ounces | 16.02 ounces |
- 1. Using the ±2σ rule, what variance investigation decisions would be made?
- 2. 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 in this example? How could Harvest employ Six Sigma programs to improve quality?
Want to see the full answer?
Check out a sample textbook solutionChapter 19 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
- What will be the monthly payment on the loan for this general accounting question?arrow_forwardPettis needs to determine its year-end inventory. The warehouse contains 27,000 units, of which 3,700 were damaged by flood and cannot be sold. Another 2,700 units were purchased and shipped to FOB destination, and are in transit. The company also consigns goods and has 4,700 units at a consignee's location. How many units should Pettis include in its year-end inventory? A. 34,400 B. 25,300 C. 30,700 D. 38,100 E. 28,000arrow_forwardfinancial accounting questionarrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub