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Romashka [77]
2 years ago
7

PlastiPharm produces a foundational product that sits on a shelf until it is needed and added to another product. In reviewing t

he process of combining the two products, the production staff realized that the foundational products are sometimes not tested, although the final product is always tested. They determined that all the foundational products will now undergo testing. The additional testing will add time and effort, which translates to additional costs, so why would PlastiPharm want to perform the additional testing?
a.The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts).
b.Making sure that all parts are tested ensures that the company is ready to respond to last-minute orders.
c.The additional testing will help the company meet customer demands for certification that all their products have been tested 100 percent of the time.
d.Testing all the parts addresses any questions that customers might have about quality or performance of materials.
Business
1 answer:
Alexxx [7]2 years ago
8 0

PlastiPharm would want to perform the additional testing because:

  • The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts). (Option C)
  • Testing all the parts addresses any questions that customers might have about quality or performance of materials. (Option D)

<h3>Why do manufacturers carry out testing?</h3>

Rigorous testing is usually carried out by companies to ensure that defects and hazards are detected before the products are sent out into the market.

This way, their liability from product defects is reduced or eliminated completely.

Learn more about testing at;
brainly.com/question/15243255
#SPJ1

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The following information is available for Miguel Company at December 31, 2020: beginning inventory $160,000; ending inventory $
rodikova [14]

Answer:

5.25

Explanation:

Inventory turnover = Cost of goods sold / Average inventory

Cost of goods sold = $1,050,000

Average inventory = (Beginning Inventory + Ending Inventory) /2

Average inventory = ($160,000 + $240,000) / 2 = $200,000

Next, use the average inventory value in the turnover formula above;

Inventory turnover = 1,050,000 / 200,000

= 5.25

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3 years ago
A decrease in the fixed asset turnover ratio from 3.0 to 2.2 indicates a.an unfavorable change in the efficiency of using fixed
kakasveta [241]

Answer:

d.an unfavorable change in the efficiency of using fixed assets to generate sales.

Explanation:

Since as we can see in the given situation that there is the reduction in the fixed asset turnover ratio i.e. it is reduced from 3 to 2.2 this means that there is a change i.e. unfavorable or non-favorable with respect to the efficiency of applying the fixed asset in order to producing or generating the sales

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3 years ago
Feldpausch Corporation has provided the following data from its activity-based costing system:
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Answer:

Product margin per unit= $7.2

Explanation:

Giving the following information:

Activity Cost Pool Total Cost Total Activity

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Inspection $ 97,155 1,270 inspection-hours

First, we need to calculate the estimated overhead rate for each activity cost pool:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Assembly= 1,137,360/84,000= $13.54 per machine hour

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Inspection= 97,155/1,270= $76.5 per inspection hour

We will calculate the total cost of production and then the unitary cost to determine the product margin:

Total cost= direct material + direct labor + allocated overhead

The company makes 470 units of product W26B a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit.

Total cost= 40.30*470 + 42.22*470 + (660*13.54 + 50*25.89 + 40*76.5)= 52,075.3

Unitary cost= 52,075.3/470= 110.80

Product margin= selling price - unitary cost= 118 - 110.8= $7.2

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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

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