Question: Best Friend Canine Products produces high quality dog food distributed

Best Friend Canine Products produces high- quality dog food distributed only through veterinary offices. To ensure that the food is of the highest quality and has taste appeal, Best Friend has a rigorous inspection process. For quality control purposes, Best Friend has a standard based on the pounds of food inspected per hour and the number of pounds that pass or fail the inspection. Best Friend expects that for every 11,000 pounds of food produced, 1,100 pounds of food will be inspected. Inspection of 1,100 pounds of dog food should take 1 hour. Best Friend also expects that 5% of the food inspected will fail the inspection. During the month of May, Best Friend produced 2,310,000 pounds of food and inspected 220,000 pounds of food in 205 hours. Of the 220,000 pounds of food inspected, 11,800 pounds of food failed to pass the inspection.

1. Compute two variances that help determine whether the time spent on inspections was more or less than expected. (Follow a format similar to the one used for the variable overhead spending and efficiency variances, but without prices.)
2. Compute two variances that can be used to evaluate the percentage of the food that fails the inspection.

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  • CreatedJanuary 15, 2015
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