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Kathy's Kette Potato Chips produces gourmet chips distributed to chain sub shops throughout Califomia. To ensure that their chips are of the highest quality and have taste appeal, Kathy has a rigorous inspection process. (Click the icon to view additional information.) Read the requiremants. Requirement 1. Compute two variances that help determine whether the time spent on inspections was more or less than expected. Begin by calculating the following amounts for the inspection hours. (Enter your answers to one decimal place, XX.) Actual Pounds Inspected Budgeted Pounds per Hour Standard Pounds Inspected for Actual Output/Budgeted Pounds per Hour Actual Hours For Inspection Now compute the efficiency and quantity variances for time spent on inspections. (Enter your answers to one decimal place, X.X. Label the variance as favorable (F) or unfavorable (U).) Efficiency variance Quantity variance Requirement 2. Compute two vaniances that can be used to evaluate the percentage of the food that fails the inspection Calculate the following amounts for the pounds that failed inspection. hours More Info hours For quality control purposes, Kathy has a standard based on the pounds of chips inspected per hour and the number of pounds that pass or fail the inspection. Kathy expects that for every 1,000 pounds of chips produced, 200 pounds of chips will be inspected. Inspection of 200 pounds of chips should take 1 hour. Kathy also expects that 1% of the chips inspected will fail the inspection. During the month of May, Kathy produced 113,000 pounds of chips and inspected 22,300 pounds of chips in 120 hours. Of the 22,300 pounds of chips inspected, 215 pounds of chips failed to pass the inspection. Actual Pounds Inspected x Budgeted Inspection Failure Rate Standard Pounds Inspected for Actual Output x Budgeted Inspection Failure Rate Actual Pounds Failing Inspection Finally compute the efficiency and quantity variances for pounds of food that fail inspection. (Label the variance as favorable (F)or unfavorable (U)) Efficiancy variance Quantity variance lbs. Print Done lbs

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