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:

Standard Business Mileage

The set rate per mile the IRS allows for deduction when an individual uses their personal vehicle for business purposes.

Automobiles

Self-propelled vehicles designed for transport on public roads, commonly referred to as cars.

Cents Per Mile

An IRS-allowed method of calculating deductions for business vehicle expenses based on miles driven.

Net Investment Income

The total income received from investment assets, like stocks and bonds, minus related expenses.