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

question 31

Multiple Choice

Broha Company manufactured 1,500 units of its only product during 2011.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 2010 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
The partial direct labor operational productivity in 2010 is: (round all calculations to two significant digits)

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

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Definitions:

Sales Bonuses

Additional compensation given to employees, usually sales personnel, based on performance and achievement of sales targets.

Ownership

Refers to the legal rights and interests a person or entity has in a property, asset, or business, entitling them to use, manage, and enjoy its benefits.

Owner's Drawings

Withdrawals made by the owner from the business for personal use, considered as a reduction in the equity.

Owner's Capital

The amount of money and assets invested in a business by its owner, minus any withdrawals.