Customers at a DMV arrive at a rate of 45 per hour. There are three servers that can process customers at an average of 3 minutes
(a) What is the average wait time?
(b) What is the average number of customers waiting?
(c) What is the average number of customers in the DMV?
(a) Wq = 0.04 hour
(b) Lq = 1.70
(c) L= 3.95
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Jackson, Inc. produces two different products (Product 5 and Product Z) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $500,000, while the cost of Inspection is $30,000. Product 5 uses 20% of total machine hours and 75% of total batches. What is the total Inspection cost assigned to Product Z?
A. $22,500 B. $125,000 C. $375,000 D. $7,500
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