Whaler Utilizes Automated Machines to Sew Sails for Its Whaling

question 35

Multiple Choice

Whaler utilizes automated machines to sew sails for its whaling ships.The manufacturing records indicate the Model Z7B sail uses $4,500 of fabric,requires 2 direct labor hours to finish and tie off threads and 5 hours of machine sewing time.The direct labor rate averages $12.50 per hour.Manufacturing overhead is added to the product cost of a sail based on a rate of $40 per machine hour.The company applies a 32% markup on cost.What is the sales price of a Model Z7B sail?

• A) $6,237.
• B) $4,725.
• C) $6,026.
• D) $6,009.

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Definitions:

Comparative Purposes

For purposes of comparison, often to analyze differences or similarities between two or more items or situations.

External Data

Information that originates outside the organization and is used for analysis or decision making.

Economic Analyses

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints.

Numerical Values

Quantitative data represented by numbers.