Ace Plastics Produces Many Different Kinds of Products All in One

question 22

Multiple Choice

Ace Plastics produces many different kinds of products all in one manufacturing facility. They have identified four activities for their costing system: The activity rates are as follows:
Ace received an order for 3,000 plastic toys. The engineering design shows that the order will require $540 of direct material cost in total, $90 of direct labor cost, will require 4 purchase orders, will use 2 metric tons of chemical base, will need 8 direct labor hours, and will produce 3.000 units of product. How much is the manufacturing cost for one unit of product? (Please round to the nearest tenth of a cent.)

• A)$0.630
• B)$0.365
• C)$0.395
• D)$0.185

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Definitions:

Short-Run Economic Fluctuations

Variations in the pace of economic activity, typically characterized by changes in GDP, unemployment, and other indicators, happening over a short period.

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments, known for advocating increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.

Aggregate Demand

Aggregate ask for products and services within an economy, designated at a particular all-encompassing price level throughout a specified interval.

Unemployment

Unemployment is the situation where individuals who are capable of working and are actively seeking employment are unable to find a job.