Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 41P
Bus and subway ridership for the summer months in London, England, is believed to be tied heavily to the number of tourists visiting the city. During the past 12 years, the data on the next page have been obtained:
Associated Press
| YEAR (SUMMER MONTHS) | NUMBER OF TOURISTS (IN MILLIONS) | RIDERSHIP (IN MILLIONS) | ||
| 1 | 7 | 1.5 | ||
| 2 | 2 | 1.0 | ||
| 3 | 6 | 1.3 | ||
| 4 | 4 | 1.5 | ||
| 5 | 14 | 2.5 | ||
| 6 | 15 | 2.7 | ||
| 7 | 16 | 2.4 | ||
| 3 | 12 | 2.0 | ||
| 3 | 14 | 2.7 | ||
| 10 | 20 | 4.4 | ||
| 11 | 15 | 3.4 | ||
| 12 | 7 | 1.7 | ||
- a. Plot these data and decide if a linear model is reasonable.
- b. Develop a regression relationship.
- c. What is expected ridership if 10 million tourists visit London in a year?
- d. Explain the predicted ridership if there are no tourists at all.
- e. What is the standard error of the estimate?
- f. What is the model’s correlation coefficient and coefficient of determination?
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Sammy's Soldier, manufactures paints. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 2017 are: Work in process, beginning inventory, 30% converted.............. 200 units
Units started during February............................................................... 800 units
Work in process, ending inventory..................................................... 240 units
Costs for Department A for February 2017 are:
Work in process, beginning inventory: Direct materials.................................................. $150,000
Conversion costs............................................................................................................................. $210,000
Direct materials costs added during…
Consider the following data collected for Albo's Rentals:
Direct Materials Direct Manufacturing Labor
Cost incurred
Actual inputs x Actual prices $210,000 $95,000
Actual inputs x standard prices 214,000 88,000
Standard inputs allowed for
actual output x standard prices 220,000 85,000
Required: Compute the price and efficiency variances for direct materials:
Question 17Answer
a.
Price $4000 F; Efficiency $10000 U
b.
Price $5000 F; Efficiency $5000 F
c.
Price $4000 F; Efficiency $6000 F
d.
Price $10000 U; Efficiency $4000 F
Chapter 4 Solutions
Operations Management
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