Use the Following Information for the Next 4 Questions

question 76

Multiple Choice

Use the following information for the next 4 questions.
White, Inc. produces a chemical product whose primary component is purchased on credit and any discounts are always taken. The following material and labor elements make up the costs of the product: 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 labor. 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 gallon equals 4 quarts.
-The standard hours per finished unit is

• A) 1.2 hours
• B) 1.5 hours
• C) 1.6 hours
• D) 1.45 hours

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Definitions:

Equipment Inventory

A detailed list of tools, machines, and other physical resources available for use within an organization or project.

Brand Name

The name given to a product or service by its manufacturer or provider to distinguish it from others in the market.

Model Number

A specific designation given by manufacturers to identify a particular product or version within a line of items.

Equipment Replacing

The process of substituting old or malfunctioning equipment with newer, functional units to ensure efficiency and safety.