A Sawmill Paid $70,000 for Logs That Produced 200,000 Board

question 116

Multiple Choice

A sawmill paid $70,000 for logs that produced 200,000 board feet of lumber in three different grades and amounts as follows: $\begin{array}{lll}\underline { \text { Grade }}&\underline { \text { Production }}&\underline { \text { Market Price }}\\\text { Structural } & 25,000 \text { board feet } & \$ 1,350 / 1,000 \mathrm{bd} \text { ft. } \\\text { No. 1 Common } & 75,000 \text { board feet } & \$ 750 / 1,000 \mathrm{bd} . \mathrm{ft} \\\text { No. 2 Common } & 100,000 \text { board feet } & \$ 300 / 1,000 \mathrm{bd} \text {. }\end{array}$ How much of the $70,000 joint cost should be allocated to No.2 Common?

• A)$0
• B)$17,500
• C)$23,333
• D)$35,000
• E)$70,000

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability within a set of data points or distribution.

Lead Time

The amount of time that passes from the start of a process until its completion, often used in the context of product manufacturing and delivery.

Weekly Demand

The total quantity of goods or services that consumers are willing and able to purchase over the course of a week.

Customer Service Level

A measure of the quality of service provided to customers, often evaluated through metrics like response time, satisfaction rates, and resolution effectiveness.