Answer:
Indirect manufacturing cost= $22100
Explanation:
The following data is provided:
Direct materials $ 6.20
Direct labor $ 3.10
Variable manufacturing overhead $ 1.35
Fixed manufacturing overhead $ 14,000
Sales commissions $ 1.50
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 4,500
A total of 6,000 units have been produced.
To find the indirect manufacturing cost: variable overhead plus fixed manufacturing overhead is calculated as 1.35 * 6000 + 14000 = $22100.
Answer:
The question is rephrased to include the options:
A. The production order quantity model applies under conditions where the basic EOQ model's assumptions hold true, except that receiving is not instantaneous.
B. Average inventory exceeds half the quantity of production order.
C. Due to the non-instantaneous receipt, some items are used immediately rather than being stored.
D. All other things being equal, a lower demand rate to production rate ratio results in a smaller production order quantity.
E. All options are true.
The right answer is option B, "Average inventory is more than one-half of the production order quantity."
Explanation:
Having inventory allows for a division within the production stages, separating finished products from those that are not yet completed, potentially generating income for the company.
An average inventory will be less than half of the production order quantity.
The production order quantity model allows for gradual receipt of orders rather than a single bulk delivery.
This model aids companies in managing their inventory holding costs and average fixed ordering expenses, ultimately helping them to check and reduce inventory costs and providing clarity on appropriate production quantities at any time.
The effective annual financing cost associated with the furniture purchase amounts to 5.52%. The calculation shows that the true cost is derived by considering the total paid versus the principal. After 30 years, the future amount indicates an interest rate of 4.35% compounded monthly.
Answer:
Option (E) is the correct answer.
Explanation:
Labor productivity will increase by 50%.
Currently, productivity is at 5000 pairs per worker; with the productivity boost, it will rise to:
= 5,000 × (1 + 50%)
= 7,500.
Total annual pay stands at $40,000.
Cost per unit with higher productivity:
= Total pay ÷ New productivity level
= 40,000 ÷ 7,500
=
$5.33.
Thus, labor costs per unit produced will decrease from $8.00 to $5.33 for a facility in North America.
