Stone Company Stone Company Produces 50,000 Units of Product Q

question 58

Multiple Choice

Stone Company Stone Company produces 50,000 units of Product Q and 6,000 units of Product Z during a period.In that period,four set-ups were required for color changes.All units of Product Q are black,which is the color in the process at the beginning of the period.A set-up was made for 1,000 blue units of Product Z; a set-up was made for 4,500 red units of Product Z; a set-up was made for 500 green units of Product Z.A set-up was then made to return the process to its standard black coloration and the units of Product Q were run.Each set-up costs $500.
Refer to Stone Company.If set-up cost is assigned on a volume basis for the department,what is the approximate per-unit set-up cost for the red units of Product Z?

• A)$.036.
• B)$.111.
• C)$.250.
• D)None of the responses are correct.

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Definitions:

Differential Reproduction

A process where individuals with certain traits reproduce more than others, leading to changes in genetic characteristics over generations.

Population Growth

The increase in the number of individuals in a population, influenced by birth rates, death rates, immigration, and emigration.

Thomas Malthus

An English economist and demographer, best known for his theory that population growth will always tend to outrun the food supply.

Mutation

Change in the nucleotide structure of an organism’s DNA.