Broha Company Manufactured 1,500 Units of Its Only Product During

question 51

Multiple Choice

Broha Company manufactured 1,500 units of its only product during 2019. The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2018 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
Round all calculations to 2 significant digits.
The partial direct labor operational productivity in 2018 is:

• A) 0.22.
• B) 0.25.
• C) 4.00.
• D) 4.50.
• E) 5.00.

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Definitions:

Common Shares

Represents ownership equity in a corporation, providing voting rights and dividends to shareholders.

Board of Directors

A group of individuals elected to represent shareholders and govern the activities and policies of a corporation.

Corporate Promoter

An individual or entity that undertakes the creation and organization of a corporation, including the arrangement of its initial affairs.

Lease

A contract granting use or occupancy of property during a specified period in exchange for a specified rent or other terms.