Use the Following Information for Questions
Ortiz Co If Ortiz Buys the Part from an Outside Supplier, $40,000

question 49

Multiple Choice

Use the following information for questions
Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: $$\begin{array} { l r } \text { Direct materials } & \$ 55,000 \\\text { Direct labor } & 160,000 \\\text { Variable overhead } & 75,000 \\\text { Fixed overhead } & 175,000\end{array}$$ If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable.
-What is the relevant cost per unit of part A12E?

• A) $58
• B) $85
• C) $93
• D) $66

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Definitions:

Reliability

Is the consistency of a particular selection device—that is, it measures whatever it is supposed to measure without random error; this is not the same as accuracy.

Behavioral Examples

Specific instances of an individual's actions or reactions used to illustrate patterns of behavior.

Performance Appraisal

A systematic evaluation of an employee's performance at work, typically conducted by their supervisor to provide feedback and guide future development.

Formal Evaluation

The process of systematically assessing an employee's performance against predefined criteria or objectives through structured techniques.