A Workstation's Output Is 200 Bottles of Wine Per Hour

question 81

Multiple Choice

A workstation's output is 200 bottles of wine per hour.It takes 45 minutes to receive a withdrawal kanban of corks from the previous workstation.The withdrawal kanban is attached to a container holding 30 corks.The process uses a safety factor of 20 percent.What is the number of withdrawal kanbans needed to support the bottling process?

• A)4
• B)5
• C)6
• D)3

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Fixed Costs

Costs that do not vary with the level of production or output and are incurred even if the business is producing nothing.

Total Revenues

The gross income generated by a business through its sales activities, prior to the deduction of any operating expenses.

Average Variable Cost

The variable cost of production divided by the quantity of output produced, indicating the variable cost on a per-unit basis.