All categories

3 years ago

A manufacturing company has budgeted production at 940 units for the month. Each unit requires 3.5

1 answer:

5 0

The total cost of direct labor for the month will be $ 49350, if the company has budgeted production at 940 units for the month, each unit requires 3.5 hours of labor to produce and the average labor rate is $15 per hour.

Explanation:

The given is,

Total units produced in a month

= 940 unit per month

Time for each unit

= 3.5 unit per hour

Labor rate = $15 per hour

Step:1

Total Labor working hours for 940 units,

= Total units × Time for each unit

= 940 × 3.5

= 3290 hours

Step:2

Labor cost total working hours

= Total Labor working hours × Labor cost per hour

= 3290 × 15

= $ 49350

Result:

You might be interested in

An economist studying the market for wild Alaskan salmon determines the price elasticity of supply to be 0.43. a. In this case,

Marina86 [1]

Answer:

A. Inelastic

B. a less than 10% increase in quantity supplied

Explanation:

A supply is inelastic when a percentage change in quantity supplied is less than percentage change in price.

A supply is inelastic if the price elascitiy is less than 1.

4 0

4 years ago

Read 2 more answers

A manager states that his process is really working well. Out of 1,500 parts, 1,477 were produced free of a particular defect an

worty [1.4K]

Answer:

, other things being equal?DPMO= # of defects/# of opportunities for error per unit x # of units (1,000,000)DPMO= 23/1500 x 1,000,000 or DPMO= 23/1,500,000,000 or DPMO= 1.53The 1.53 is within the target specification of Six Sigma. This performance is rated as within limits means the process is working well. The product is within the limits of the defects allowed based off the1500 parts or the “four defects per million units

Explanation:

5 0

4 years ago

Which of the following statements are true concerning the predetermined overhead rate when the direct labor-hour requirement for

In-s [12.5K]

Answer: The predetermined overhead rate increased because the total direct labor-hours dropped

Explanation:

The predetermined overhead rate refers to an allocation rate which is used in applying the estimated manufacturing overhead cost to the cost objects for a particular reporting period.

When there's reduction in the direct labor-hour requirement from 5 hours to 2 hours, the predetermined overhead rate increased because the total direct labor-hours dropped

The predetermined overhead rate is calculated as the total overhead cost divided by the machine hour. Therefore, if there's reduction in the direct labor hour rate, then there will be a rise in the predetermined overhead rate.

6 0

3 years ago

Vid Co., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to

Gemiola [76]

Answer:Therefore the current stock price is $P_{0}$ = $44.384

Explanation:

Stock price for $9^{th}$ year or $P_{9}$ is as follows:

$P_{9} = \frac{Next Dividend\left ( D_{10} \right )}{(Required Rate(r) - Growth rate(g))}$

$P_{9}$ = $[\frac{12}{(13-4)}]$

$P_{9}$ = $133.33

The current stock price or $P_{0}$ is

$P_{0}$ = $\frac{P_{9}}{(1 + Required rate of return)^9}$

$P_{0}$ = $\frac{133.33}{(1 + 0.13)^9}$

$P_{0}$ = $44.384

Therefore the current stock price is $P_{0}$ = $44.384

6 0

3 years ago

The following information pertains to Nova Co.'s cost-volume-profit relationships:

vitfil [10]

Answer: $150

Explanation:

Breakeven point in units sold = 2,000

Variable expenses per unit = 500

Total fixed expenses = $150,000

The break even in units is calculated as:

= Fixed Cost / Contribution per Unit

Therefore,

1000 = 150000/ Contribution per unit

Contribution per Unit will now be:

= 150000 / 1000

= 150

It should be noted that after the break even point, every unit sold will lead to an increase in the contribution per unit to the net operating income. Therefore, the amount that'll be contributed to net operating income by the 2,001st unit sold is $150.

4 0

3 years ago