Use the Following Data for Next 2 Questions

question 125

Multiple Choice

Use the following data for next 2 questions:
Tieton Co. has two departments, Fabrication and Assembly. They produce 2 products. Product T needs 6 hours in fabrication and 6 hours in assembly. Product S needs 2 hours in fabrication and 4 hours in assembly. Fabrication has 24 hours available and Assembly 18. Total variable costs are $ 20 and $15 for T and S respectively. T sells for $22 and S for $16.
-Flox Hill Consulting has its own printing department with the following annual costs: The managers would like to outsource the printing function because it is not considered a core competency. The overhead is 60% fixed. Of the fixed overhead, $60,000 is the salary of the printing department director. The remaining overhead is an allocation of overhead costs for the entire consulting firm. The department director would still oversee the printing activities and coordinate all of the printing activities for the organization with the outside printing vendor. The maximum amount that Flox Hill is willing to pay an outside firm to replace the printing services is

• A) $820,000
• B) $900,000
• C) $700,000
• D) $840,000

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Definitions:

Pitting Edema

A condition characterized by swelling in the body's tissues, which, when pressed, leaves a pit or dent that takes time to fill back in.

Heart Failure

A condition where the heart is unable to pump sufficiently to maintain blood flow to meet the body's needs.

Venous Stasis

A condition in which the flow of blood through the veins is slowed, often leading to swelling and varicose veins.

Senile Angiomas

Small, cherry-red spots on the skin, resulting from blood vessels dilating, typically appearing in older adults.