PAS Systems Has Developed an Unobtrusive Flashlight-Alcohol Detector

question 168

Multiple Choice

PAS Systems has developed an unobtrusive flashlight-alcohol detector.The flashlight readings are inadmissible in court but are used by police officers to decide whether to hold someone for a sobriety test.Each one costs $600.The manufacturer assembles a breathalyzer from one supplier with a slightly modified flashlight case from another supplier to make the new product.The breathalyzer and the flashlight case are examples of:

• A) major equipment
• B) component parts
• C) processed materials
• D) integrated parts
• E) accessory equipment

---

Definitions:

Direct Labor-Hours

A measure of the total hours worked by employees who are directly involved in the production process, used in costing and productivity analysis.

Variable Manufacturing Overhead

Costs in production that vary with the level of output, such as utilities or materials, but are not directly tied to any specific product.

Variable Overhead

Costs of production that fluctuate with the level of output, including items such as utilities and materials that are not directly linked to a single product.

Efficiency Variance

The difference between the actual amount of an input used and the amount that was expected to be used, measured in financial terms.