Alpha, Inc

question 40

Multiple Choice

Alpha, Inc., manufactures Product A. The setup time for each unit of Product A is 8 hours. Gamma, Inc., that uses the just-in-time system and produces the same product has reduced setup time by 1 hour. Setup labor is $35 per hour. If Alpha wants to reduce non-value-added costs by 30 percent next year, compute the currently attainable standard for setup time. (Round answer to one decimal place.)

• A)4.5 hours
• B)7.3 hours
• C)6.2 hours
• D)5.9 hours

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Definitions:

Control Features

Mechanisms, policies, or procedures implemented to safeguard assets, ensure accurate and reliable financial data, and promote operational efficiency.

Voucher System

An internal control method in accounting where vouchers are prepared before payments are processed to ensure transactions are authorized and recorded properly.

Check Register

A record of transactions in a checking account, tracking all checks written, deposits made, and current balance.

Selling Company

A business entity that primarily engages in selling goods or services to consumers or other businesses.