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

question 80

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
In 2010,the partial financial productivity of direct labor is:

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

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Definitions:

Exchange Rates

The frequency at which currencies from different countries can be exchanged, playing a role in international trading and investment schemes.

Foreign Subsidiary

A company that is partly or wholly owned by another company, known as the parent company, and is located in a different country.

Functional Currency

A currency that an entity uses to conduct key aspects of its business operations, affecting how financial transactions and balances are denominated.

Dividends

Payments made by a corporation to its shareholder members, typically from profits earned.