Orlando Avionics Makes Three Types of Radios for Small Aircraft-Model

question 124

Multiple Choice

Orlando Avionics makes three types of radios for small aircraft-model A, model B, and model C. The manufacturing operations are mechanized and there is no direct labor. Manufacturing overhead costs are significant, and Orlando has adopted an activity-based costing system. Direct materials costs per unit for each model are as follows: Orlando has three activities-assembly, materials management, and testing. The cost driver for assembly is machine hours. The cost driver for materials management is number of parts, and the cost driver for testing is the number of units of product. Total costs and production volumes for the year 2012 were estimated as follows:
The Model A radio requires 12 parts to construct, and also requires 16 machine hours of processing. What is the manufacturing cost to make one unit of Model A?

• A)$150.00
• B)$132.00
• C)$126.50
• D)$154.50

Understand the common drivers and facilitators of successful supply chain relationships.

Differentiate among a vendor, a partner, and a strategic alliance within the supply chain context.

Identify and describe the basic types of Third-Party Logistics (3PL) firms.

Recognize the two types of logistics relationships and be able to discuss one in detail.

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Definitions:

Emotions

Complex reactions to internal or external events involving subjective feelings, physiological arousal, and observable behavior.

Motor Skills

The abilities required to control and coordinate the movements of the muscles in the body.

Passions

Intense emotions or desires that drive individuals to pursue specific interests or activities.

Sleep Pattern

The natural rhythm of sleep and wakefulness, indicating when and how long a person sleeps, which can vary by age and lifestyle.