The Following Information Is Available for Product XX5

question 54

Multiple Choice

The following information is available for product XX5.
Direct material costs $48.00 per unit of product
Costs of machining $37.50 per machine hour
Costs of packing $12.50 per carton packed
What is the total full cost of an order for 1000 units of product XX5 which will use 65 machine hours and 45 cartons?

• A)$48 000.00
• B)$50 437.50
• C)$51 000.00
• D)$48 562.50

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Definitions:

Formal Hierarchy

An organizational structure where individuals are ranked according to their levels of authority and responsibility, forming a clear chain of command.

Centralized Structure

An organizational structure where decision-making authority is concentrated at the top levels of management.

Organic Structure

Is a flexible, decentralized organizational structure with less formal procedures, open communication channels, and a focus on adaptability and teamwork.

Decentralized Decision

A management strategy where decision-making powers are distributed among various levels of the organization rather than being concentrated at the top.