Jasmine Morron Is Examining a Statistical Control Chart on the Recent

Multiple Choice

Jasmine Morron is examining a statistical control chart on the recent cost report of her manufacturing company. Jasmine is focusing on one specific process, the labour efficiency variance of polishing. She determines that the critical values for this process are $1000. The labour efficiency variances for the last 6 months were all favourable: $500F (July) , $600F (August) , $750F (September) , $880F (October) , $900F (November) and $990F (December) . Jasmine decides not to investigate these variances. Do you agree with her decision?

A) Yes, because all the variances are below the critical value.
B) Yes, because all the variances are below the critical value and are favourable.
C) No, because there is a trend of the variances increasing steadily over time.
D) No, she should investigate the variances in November and December because they are both within 10% of the critical value.