A division of a company manufactures two products, which are in high demand in the defence industry. Product A is stamped out in a machine press, at the rate of 10,000 per hour. Product B is identical to product A, with the exception that it is made from thicker steel, and requires the machine press to be recalibrated. Product A is produced on the day shift and product B is produced on the afternoon shift, allowing set up changes to be done between shifts.
In this case, set up hours are related to which of the following?
A) units of output
B) batches of output
C) the number of customers
D) machine hours
E) labour hours

Question

Quizplus · Accepted Answer

Set up hours are related to batches of output because the recalibration of the machine press between shifts for different products (Product A and Product B) represents a changeover that is batch-related, not directly tied to the number of units, customers, machine hours, or labor hours.

A Division of a Company Manufactures Two Products, Which Are