Answer:
a) 0.667
b) Yes
Explanation:
Data provided in the question:
Mean = 0.04
Standard Deviation = 0.003
Upper Specification Limit, USL = 0.046
Lower Specification Limit, LSL = 0.034
Now,
a) Capability Index is given as:
Cp = 
or
Cp = 
or
Cp = 0.667
Also,
Cpk = min(
or
Cpk = min(
or
Cpk = min( 0.667
, 0.667 )= 0.667
Since,
Cp and Cpk are same in this case
therefore, it is ideal condition and process is capable
b) yes
Not sure but I'll take a chance: Probably product existance. If not then product capture
D for sure is the correct answer
Answer:
There will be a difference in the income .
Absorption costing income will be lower as it transfers all the fixed costs to the ending inventory.
Variable costing income will be higher as it does not transfer the fixed costs to the ending inventory.
The difference will be of $ 104000
Explanation:
Increase in units 8000
Variable Fixed
Unit manufacturing costs of the period $24.00 $10.00
Unit operating expenses of the period 8.00 3.00
Total Unit Costs $ 32.00 $ 13.00
The net operating income under variable costing for the year will be $ 13* 8000= $ 104000 Lower than the net operating income under absorption costing. This is because the all fixed costs will be treated as period cost rather than product costs.
In variable costing the ending inventory will be $104000 lower than the ending inventory under absorption costing because the fixed costs will not be allocated to products.
Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.
Well what was your question maybe i can help