Molonglo Industries produces two products,Deluxe and Supreme.Molonglo expects to sell 10 000 units of product Supreme and to have an inventory of 2000 units of Supreme on hand at the end of the period.Currently,Molonglo has 800 units of Supreme on hand.Supreme requires two labour operations,moulding and polishing.Each unit of Supreme requires one hour of moulding and two hours of polishing.The direct labour rate for moulding is $20 per moulding hour and the direct labour rate for polishing is $25 per polishing hour.The expected number of hours of direct labour for Supreme is:

Question

Quizplus · Accepted Answer

To calculate the expected number of hours of direct labour for Supreme, we first determine the total units to be produced. Starting with 800 units on hand, expecting to sell 10,000 units, and wanting 2,000 units on hand at the end of the period, Molonglo needs to produce 10,000 - 800 + 2,000 = 11,200 units. Each unit requires 1 hour of moulding and 2 hours of polishing. Therefore, for 11,200 units, moulding hours are 11,200 * 1 = 11,200 hours, and polishing hours are 11,200 * 2 = 22,400 hours.

Molonglo Industries Produces Two Products,Deluxe and Supreme