Rogers Rods & Reels Ltd

question 44

Multiple Choice

Rogers Rods & Reels Ltd.
US-based Rogers Rods & Reels Ltd. manufactures and sells various types of fishing equipment. At the end of 2008, Rogers had estimated for the production and sale of 15 000 bass fishing rods. Each rod has a standard calling for 1.5 pounds of direct material at a standard cost of $8.00 per pound and 15 minutes of direct labour time at a standard cost of $.18 per minute. During 2009, Rogers actually produced and sold 16 000 rods. These 16 000 rods had an actual direct materials cost of $179 200 (25 600 pounds at $7.00 per pound) and an actual direct labour cost of $44 800 (224 000 minutes at $.20 per minute) . Each rod sells for $50.
-What is Rogers' net income (loss) based on a flexible budget?

• A) $579 500
• B) $564 800
• C) $576 000
• D) $590 000

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Definitions:

Replenishment Lead Time

The time interval between placing an order and receiving the stock, crucial for inventory management.

Product Availability

The degree to which products are in stock and readily available to meet customer demand.

Supply Chain Coordination

The alignment and harmonization of strategies and actions among all participants in a supply chain to improve efficiency and effectiveness.

Replenishment Lead Time

The time taken from placing an order for more inventory until it is received and ready for use or sale, impacting inventory management strategies.