Answer the Following Questions Using the Information Below

question 35

Multiple Choice

Answer the following questions using the information below:
Wallace Company provides the following data for next year:
The gross profit rate is 40% of sales. Inventory at the end of December is $21,600 and target ending inventory levels are 30% of next month's sales, stated at cost.
-Shamokin Manufacturing produces two products, Big and Bigger. Shamokin expects to sell 10,000 units of product Bigger and to have an inventory of 2,000 units of Bigger on hand at the end of the period. Currently, Shamokin has 800 units of Bigger on hand. Bigger requires two labor operations, molding and polishing. Each unit of Bigger requires one hour of molding and two hours of polishing. The direct labor rate for molding is $20 per molding hour and the direct labor rate for polishing is $25 per polishing hour. The expected cost of direct labor for Bigger is:

• A)$224,000
• B)$560,000
• C)$616,000
• D)$784,000

---

Definitions:

Marshall McLuhan

A Canadian philosopher and communication theorist best known for coining the expression "the medium is the message" and for his studies on media theory.

Media Endorsement

The support or approval of a product, service, or idea by a recognized media outlet, often influencing public opinion and behavior.

Capitalism

An economic system in which trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Elite Control

The dominance or significant influence exerted by the elite or ruling class in directing the political, economic, or social affairs of a society.