Ring Company Produces Two Types of Product: Small and Large

question 15

Multiple Choice

Ring Company produces two types of product: Small and Large. Two work orders for two batches of the products are shown below, along with some additional cost information:
$\begin{array}{lcc}&\text { Small }&\text { Large } \\&\text {Work Order } 10&\text { Work Order } 11\\\hline\text { Direct materials (actual costs) } & \$ 45,000 & \$ 75,000 \\\text { Applied conversion costs: } & & \\\text { Mixing } &?& ? \\\text { Cooking } & \$ 12,000 & \$ 12,000 \\\text { Bottling } & \$ 10,000 & \$ 15,000 \\\\\text { Batch size (bottles) }& 5,000 & 5,000\end{array}$
In the Mixing Department,conversion costs are applied on the basis of direct labour hours.Budgeted conversion costs for the department for the year were $50,000 for labour and $125,000 for overhead.Budgeted direct labour hours were 2,500.It takes three minutes to mix the ingredients needed for each bottle.
Small (Work Order 10) and Large (Work Order 11) flow through the Mixing Department first,then through the Cooking and Bottling departments.
-Refer to the figure.What is Ring Company's unit cost of Small?

• A)$3.50
• B)$16.90
• C)$23.90
• D)$70.00

Understand the concept of reverse mentoring and its benefits within a company.

Identify and understand different types of professional networks and their significance.

Recognize and explain role hierarchies and norms within organizational contexts.

Grasp the concept of role diversity and its importance in a business environment.

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Definitions:

Organizational Architecture

Describes the structure and design of an organization, including its division of labor, hierarchies, systems, procedures, and relationships that enable it to function and meet its objectives.

Social Entrepreneurship

The practice of applying business principles and strategies to develop, fund, and implement solutions to social, cultural, or environmental issues.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc.

Job Embeddedness

The extent to which an employee feels attached to their job and company, influencing their likelihood to stay.