Golden Ring Company Produces Two Types of Product: Large and Larger

question 120

Multiple Choice

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: $\begin{array} { l }&\text { Large } & \text { Larger } \\&\text { Work Order } 10 & \text { Work Order } 11\\\text {Direct materials (actual costs) }&\$45,000&\$75,000\\\text { Applied conversion costs:}\\\text {Mixing }&?&?\\\text { Cooking } & \$ 12,000 & \$ 12,000 \\\text { Bottling } & \$ 10,000 & \$ 15,000 \\\\\text { Batch size (bottles) } & 5,000 & 5,000\end{array}$
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
What are Golden Ring Company's conversion costs applied to Large (Work Order 10) from the Mixing Department for each batch?

• A)$35,000
• B)$35
• C)$175,000
• D)$17,500

Recognize the significance of product and process innovation on firm profitability and competitive advantage.

Identify factors influencing consumer decisions to buy new products, including price, utility, and innovation.

Understand the role of research and development (R&D) expenditures in sustaining innovation and their risks and rewards.

Grasp the concept of utility maximization and how consumers allocate their budget to maximize total utility.

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Definitions:

Evaluating Results

The process of analyzing the outcomes of actions or decisions to determine their effectiveness and learn from them.

Communication System

A structure of methods or processes by which information is transmitted and received between individuals or entities.

Project Management

The process of starting, organizing, implementing, managing, and concluding a team's tasks to attain certain objectives and fulfill defined criteria for success.

Establishing Checkpoints

The act of setting specific points or milestones in a project or plan to review progress and make necessary adjustments.