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slamgirl [31]
3 years ago
12

Blue corporation's standards call for 2,500 direct labor-hours to produce 1,000 units of product. during may 900 units were prod

uced and the company worked 2,400 direct labor-hours. the standard hours allowed for may production would be:
Business
1 answer:
Vladimir [108]3 years ago
6 0
Given:
standard hours: 2,500 dl for 1,000 units
actual hours: 2,400 dl for 900 units

Standard direct labor-hours per unit = 2,500 direct labor-hours ÷ 1,000 units= 2.5 direct labor-hours per unit

Standard hours allowed = 2.5 direct labor hours per unit × 900 units<span>= 2,250 hours

The standard hours allowed for may production would be 2,250 hours.</span>
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The return on investment for this division is (B) 20%.

<h3>What is the return on investment (ROI)?</h3>
  • Return on investment (ROI) or return on costs (ROC) is a ratio of net income to investment over time (costs resulting from an investment of some resources at a point in time).
  • A high ROI indicates that the benefits of the investment outweigh the costs.
  • ROI is used as a performance indicator to evaluate the efficiency of an investment or to compare the efficiencies of several investments.
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<h3>To find the return on investment for this division:</h3>

= income/average invested assets

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Therefore, the return on investment for this division is (B) 20%.

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Correct question:

The Midwest Division of Grainger Company has an investment center average invested assets of $200,000 and an investment center income of $40,000. What is the return on investment for this division?

(A) 500%

(B) 20%

(C) 25%

(D) 80%

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