Whippany Manufacturing Wants to Estimate Costs for Each Product They

question 152

Essay

Whippany manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant, and runs two flexible assembly lines. Each assembly line can produce all three products.
Required:
a. Classify each of the following costs as either direct or indirect for each product.
b. Classify each of the following costs as either fixed or variable with respect to the number of units produced of each product.

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Definitions:

Disaccharides

Carbohydrates composed of two monosaccharide molecules bonded together, such as sucrose and lactose, which are used by organisms as energy sources.

Polysaccharide

A carbohydrate molecule consisting of long chains of monosaccharide units bound together by glycosidic linkages.

Sugars

Carbohydrates that are sweet to taste, soluble in water, and used as a source of energy by living organisms.

Hundreds-Thousands

A numerical range indicating quantities or counts from 100 to 999, often used to describe approximate figures.