The Manoli Company Has Collected the Following Data for Use

question 27

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 activity rate for moving materials?

• A)0.2
• B)$1000
• C)$800
• D)$200

Differentiate between long-term and short-term financial risks and their sources.

Recognize the role of financial engineering in managing financial risks.

Comprehend the use of commodity and interest rate hedging strategies to mitigate financial exposure.

Understand the strategic application of financial instruments in corporate risk management and operational planning.

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Definitions:

Relative Frequency

The proportion of occurrences of a specific event compared to the overall amount of attempts or observations.

Nonoverlapping Classes

Categories or groups in a classification system where each member of the population belongs to one and only one group, ensuring distinct boundaries.

Cumulative Frequency

The sum of a series of frequencies, calculated by adding each frequency from a frequency distribution table to the sum of its predecessors.

Upper Limit

The maximum value in a given set or the highest value that a variable can assume.