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

question 101

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.
$\begin{array}{lcc}&\text { Model C } & \text { Model D }\\\text { Units completed } & 300,000 & 200,000 \\\text { Engineering hours } & 1,000 & 4,000 \\\text { Setups } & 80 & 120 \\\text { Machine hours } & 20,000 & 5,000 \\\text { Inspection hours } & 1,500 & 1,000\end{array}$ How much overhead is assigned to Model C using the 4 activity drivers?

• A)$2,820,000
• B)$2,640,000
• C)$2,060,000
• D)$560,000

Describe the characteristics of a centralized organizational structure.

Grasp the essence of Kotter's 8 Step Change Model, starting with the creation of a sense of urgency.

Define the organizational structure and its impact on employee relationships, responsibilities, and accountability.

Understand the steps and basic components of the scientific method.

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Definitions:

Settlor's Intent

The purpose or intention expressed by a settlor when creating a trust, directing how the trust assets should be managed and distributed.

Unjust Enrichment

A legal principle where one person benefits at another's expense without legal justification, prompting a remedy to correct the imbalance.

Mortgaged Property

Real estate or property whose ownership is conditional upon the repayment of a loan secured by the property itself.

Estate

An individual's net worth in the eyes of the law, encompassing all personal property, real property, and other assets.