The Manoli Company Has Collected the Following Data for Use

question 25

Multiple Choice

The Manoli Company has collected the following data for use in calculating product costs: Activity Data: (expected and actual) $$\begin{array} { | l | l | l | l | } \hline & \text { Rug Cleaners } & { \text { Sweepers } } & \text { T otal } \\\hline \text { Units Produced } & 50,000 & 250,000 & 300,000 \\\hline \text { Prime Costs } & \$ 200,000 & \$ 750,000 & \$ 950,000 \\\hline \text { Direct Labor Hours } & 10,000 & 40,000 & 50,000 \\\hline \text { Machine Hours } & 20,000 & 10,000 & 30,000 \\\hline \text { Number of Setups } & 25 & 75 & 100 \\\hline \text { Inspection Hours } & 1200 & 2,800 & 4,000 \\\hline \text { Number of Moves } & 140 & 210 & 350 \\\hline\end{array}$$
Departmental Data: (expected and actual) $$\begin{array} { | l | l | l | l| } \hline & { \text { Molding } } & \text { Assembly } & { \text { Total } } \\\hline \text { Direct Labor Hours } & & & \\\hline \text { Rug Cleaners } & 5,000 & 5,000 & 10,000 \\\hline \text { Sweepers } & & & \\\hline \text { Total } & 10,000 & 40,000 & 50,000 \\\hline \text { Machine Hours } & & & \\\hline \text { Rug Cleaners } & 17,000 & 3,000 &20,000 \\\hline \text { Sweepers } & 3,000 & 7,000 & 10,000\\\hline \text { Total } & 20,000 & 10,000 & 30,000 \\\hline \text { Overhead Costs } & & & \\\hline \text { Machining } & \$ 120,000 & \$ 30,000 & \$ 150,000 \\\hline \text { Moving Materials } & 40,000 & 30,000 &70,000\\\hline { \text { Setting Up } } & 70,000 & 10,000 & 80,000 \\\hline \text { Inspecting Products } & 20,000 & 30,000 & 50,000 \\\hline \text { Total } & \$ 250,000 & \$ 100,000 &\$350,000 \\\hline\end{array}$$ 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

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Definitions:

Vestibular Sense

The sensory system responsible for providing the brain with information about motion, head position, and spatial orientation, contributing to balance and movement coordination.

Olfactory Sense

The sensory system responsible for detecting odors, playing a key role in the perception and recognition of smells.

Gustation

The sense of taste, one of the five traditional senses, involving the perception of flavor from substances on the tongue.

Pain

A disagreeable sensory and emotional response linked to either real or possible tissue harm, or articulated in relation to such harm.