Carteret Inc Each Unit Requires 30 Feet of Cotton Rope Cord Which

question 97

Multiple Choice

Carteret Inc.
Carteret Inc. manufactures hammocks under various brand names. The company sells most of its hammocks in the second quarter of each year. Their production budget for the second quarter shows the following number of hammocks needs to be produced:
$$\begin{array} { l r } \text { April } & 6000 \text { units } \\\text { May } & 10000 \text { units } \\\text { June } & 15000 \text { units }\end{array}$$
Each unit requires 30 feet of cotton rope cord which costs $.50 per foot. The company has determined that it needs 20 per cent of next month’s raw material needs on hand at the end of each month.
In addition, each hammock requires 45 minutes of direct labour for assembly and inspection at a cost of $.25 per minute. The company currently applies manufacturing overhead to production at the rate of $8 per direct labour hour.
-The total cost of direct labour and manufacturing overhead for the month of May is:

• A) $192 500
• B) $ 82 500
• C) $172 500
• D) $168 750

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Definitions:

Binomial Distribution

A statistical distribution representing the number of successes in a fixed number of independent trials, with each trial having the same probability of success.

P(X > 1)

The probability that a random variable X takes on a value greater than 1.

Speed Limit

A legally established maximum speed at which vehicles may travel on a particular roadway.

P(3 ≤ X ≤ 6)

Represents the probability that the random variable X takes on a value between 3 and 6, inclusive.