A Company Needs to Produce 1,000 Units Per Day (The

question 31

Multiple Choice

A company needs to produce 1,000 units per day (the day is defined as 8 hours of production) .There are six tasks to be completed, with a total task time of 12 minutes.The company should have:

• A)25 workstations.
• B)2 workstations.
• C)84 workstations.
• D)14 workstations.

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Definitions:

Product Costing System

A product costing system determines the cost to manufacture a product, taking into account direct materials, direct labour, and overhead expenses, essential for pricing and profitability analysis.

Manufacturing Overhead Account

This refers to the ledger account that records all indirect factory-related costs incurred during a production period that are not directly tied to a specific product.

Overapplied

A condition where the allocated indirect costs exceed the actual indirect costs incurred.

Underapplied

A situation where the allocated or applied costs are less than the actual costs incurred, leading to a cost discrepancy.