The Manoli Company Has Collected the Following Data for Use
Question 101
Question 101
Multiple Choice
The Manoli Company has collected the following data for use in calculating product costs: Activity Data: (expected and actual) Units Produced Prime Costs Direct Labor Hours Machine Hours Number of Setups Inspection Hours Number of Moves Rug Cleaners 50,000$200,00010,00020,000251200140 Sweepers 250,000$750,00040,00010,000752,800210 T otal 300,000$950,00050,00030,0001004,000350 Departmental Data: (expected and actual) Direct Labor Hours Rug Cleaners Sweepers Total Machine Hours Rug Cleaners Sweepers Total Overhead Costs Machining Moving Materials Setting Up Inspecting Products Total Molding 5,00010,00017,0003,00020,000$120,00040,00070,00020,000$250,000 Assembly 5,00040,0003,0007,00010,000$30,00030,00010,00030,000$100,000 Total 10,00050,00020,00010,00030,000$150,00070,00080,00050,000$350,000 What is the consumption ratio for the plantwide activity rate of direct labor hours?
A) 0.25; 0.75 B) 0.71; 0.29 C) 0.2; 0.8 D) 0.8; 0.2
Correct Answer:
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