A Small Firm Manufactures Bookshelves and Desks for Microcomputers

question 74

Multiple Choice

A small firm manufactures bookshelves and desks for microcomputers. For each product it is necessary to use a table saw and a power router. To manufacture each bookshelf, the saw must be used for hour and the router for 1 hour. A desk requires the use of each machine for 2 hours. The profits are $20 per bookshelf and $50 per desk. If the saw can be used for 8 hours per day and the router for 12 hours per day, how many bookshelves and desks should be manufactured each day to maximize the profit?

• A)4 bookshelves and 2 desks
• B)2 bookshelves and 2 desks
• C)2 bookshelves and 4 desks
• D)0 bookshelves and 4 desks
• E)2 bookshelves and 0 desks

Understand the concept of voidable preferences in the context of bankruptcy.

Explain the process and principles of debt composition among creditors.

Identify and describe different types of fraudulent transfers.

Grasp the distinctions between secured and unsecured claims in bankruptcy.

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Definitions:

Produced

The completed output of goods or services as a result of manufacturing or production processes.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of those materials.

Direct Materials Quantity Variance

The variance between the real amount of materials consumed in production and the anticipated standard amount, multiplied by the cost per unit according to standards.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services in a manufacturing process.