White, Inc Each Container of the Chemical Product Contains 5

question 125

Multiple Choice

White, Inc. produces a chemical product whose primary component is purchased on credit and any discounts are always taken. The following material and labour elements make up the costs of the product: $$\begin{array} { l r } \text { Purchase price for material } & \$ 30 \text { per litre } \\\text { Freight and handling } & \$ 130 \text { per } 100 \text { litres }\end{array}$$ Each container of the chemical product contains 5.7 quarts of material. During the process 5% of the material is lost due to waste. Each container of product also requires 1.2 hours of labour. Each day 2 hours are taken for set-up, cleaning, and breaks. Also, the wage rate is $15 per hour and fringes/payroll taxes are 20% of wages. Clients can take a 3% discount if they pay invoices within 10 days; otherwise, the entire invoice amount is due within 30 days. 1 litre equals 4 quarts.
The standard rate per hour is:

• A) $18
• B) $28.80
• C) $12
• D) $21.60

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Definitions:

Asset Allocation

The process of spreading investments among different classes of assets, such as stocks, bonds, and cash to manage risk and achieve investment goals.

Portfolio Construction

The process of selecting the appropriate mix of investments and allocating assets among those investments to achieve specific investment goals.

Secondary Market

A market where investors buy and sell securities or assets from other investors, rather than from the issuing company directly.

Previously Issued

Refers to securities or stocks that have been issued in the past and are currently being traded in secondary markets.