Use the Following Information for Questions

question 109

Multiple Choice

Use the following information for questions
Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively.
-The standard direct labor hours per unit is

• A) 1 hour.
• B) 1.1 hours.
• C) 1.2 hours.
• D) 1.3 hours.

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Definitions:

Business World

Refers to the global environment comprising all individuals, companies, organizations, and activities involved in the production, distribution, and consumption of goods and services.

Technology Impacts

The influence or effect of technology on various aspects of society and the economy.

Production Orientation

A business philosophy focusing on the efficiency and effectiveness of the production process, often at the expense of customer needs or desires.

Marketing Concept

A business philosophy suggesting that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value.