Quasi-Tech Corporation Produces Specially Machined Parts Owens Produces Two Models: Model X and Model Y

question 123

Multiple Choice

Quasi-Tech Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications) . Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. Costs have been assigned to each activity using direct tracing and resource drivers: $$\begin{array} { c c c c } \text { Activity } & \text { Expected Cost } & \text { Activity Driver } & \text { Activity Capacity } \\\text { Engineering } & \$ 1,000,000 & \text { engineering hours } & 5,000 \text { hours } \\\text { Setups } & \$ 900,000 & \text { setups } & 200 \text { setups } \\\text { Machining } & \$ 2,000,000 & \text { machine hours } & 25,000 \text { machine hours } \\\text { Inspection } & \$ 800,000 & \text { inspection hours } & 2,500 \text { inspection hours }\end{array}$$ Owens produces two models: Model X and Model Y. The following table shows how the two products consume activity. $$\begin{array} { l c c } & \text { Model C } & \text { Model D } \\\text { Units completed } & 300,000 & 200,000 \\\text { Engineering hours } & 1,000 & 4,000 \\\text { Setups } & 80 & 120 \\\text { Machine hours } & 20,000 & 5,000 \\\text { Inspection hours } & 1,500 & 1,000\end{array}$$
What are the global consumption ratios of Model C and D respectively? (round to two decimal places)

• A)0.20; 0.80
• B)0.42; 0.58
• C)0.56; 0.44
• D)0.84; 0.16

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Definitions:

Inflammation

A biological response to harmful stimuli, such as pathogens or damaged cells, that results in redness, swelling, heat, and pain in the affected tissues.

Renal Tissue Perfusion

The flow of blood through the kidney's tissues, essential for filtering waste and regulating fluids and electrolytes.

Hypertension

A long-term health issue characterized by continuously high pressure in the artery walls, which can result in severe health complications.

Hemorrhagic Stroke

A type of stroke resulting from a ruptured blood vessel in the brain, leading to bleeding and damage to brain tissue.