Phil Graves Cemetery had 63,000 shares of common stock issued and outstanding at January 1, 2021. During 2021, Graves took the f
1 answer:
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Answer:
4.00
Explanation:
Given:
Upper Specification Limit, USL = 27
Lower Specification Limit, LSL = 21
Mean = 22
Standard deviation, = 0.25
Required:
Find the process capability index
First center the mean by taking the average of the LSL and USL.
Use formula below to find process capability index:
We are sullosed to take the minimum value, but since both values are equal, our process capability index will be 4.00
Therefore, the process capability index = 4.00
Answer:
Applied overhead: 387,750
underapplied by 74,250
Explanation:
to get the predetermined overhead rate we will distribute the expected cost along a cost driver. In this case, labor hours.
403,260 / 61,100 = 6.6
Then, we apply this rate to the actual labor hours for the period:
58,750 x 6.6 = 387,750
This will be the applied overhead for the period.
The we compare with the actual overhead:
387,750 - 462,000 = (74,250)
As the actual cost were higher the overhead was underpapplied.