Olaf works on an assembly line in an Oslo factory. Last month the assembly line processes were overhauled. Olaf is still responsible for soldering electrical contacts on an appliance component, but now he is also expected to review each component for quality defects after he solders. If he notes any defects, he can place the component in the scrap bin. If he scraps five such pieces in succession, he is permitted to press an emergency button above his station, which stops the assembly line completely. This job re-design is a reflection of the philosophy.

"jake’s roof repair has provided the following data concerning its costs: fixed cost per month cost per repair-hour wages and salaries $ 20,900 $ 15.00 parts and supplies $ 7.70 equipment depreciation $ 2,800 $ 0.35 truck operating expenses $ 5,720 $ 1.60 rent $ 4,690 administrative expenses $ 3,850 $ 0.50 for example, wages and salaries should be $20,900 plus $15.00 per repair-hour. the company expected to work 2,600 repair-hours in may, but actually worked 2,500 repair-hours. the company expects its sales to be $47.00 per repair-hour. required: compute the company’s activity variances for may."