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The FSOJ Company Undertakes the Following Activities in Its Production

question 32

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The FSOJ Company undertakes the following activities in its production operation and incurred the following costs during the first half of 2010: The FSOJ Company undertakes the following activities in its production operation and incurred the following costs during the first half of 2010:   Processing the juice into 3 final products involves the use of 2 machines, each of which incurred depreciation costs of $15,000 for the first half of 2010. Each product requires a different set up on the processing machines, so FSOJ normally sets up the machines to produce concentrate for the first week of each month. The machine is then set up to produce orange juice for the next 2 weeks. Finally, workers set up the same machines to produce orange icey-poles during the last week of each month. During the first half of 2010, 20% of the oranges harvested were turned into orange juice concentrate, 50% were processed into orange juice, and 30% became orange icey-poles. The relative sales values of each product were: 75% for orange juice, 20% for orange juice concentrate, and 5% for icey-poles. The orange juice concentrate operation takes up 40% of FSOJ's total factory space. Regular orange juice and orange icey-poles occupy 35% and 25%, respectively.If juice extraction costs are allocated to product lines based on relative sales values, that is, each product line's portion of total sales, the amount allocated to icey-poles will be A)  $900 B)  $5,400 C)  $4,500 D)  None of the above Processing the juice into 3 final products involves the use of 2 machines, each of which incurred depreciation costs of $15,000 for the first half of 2010. Each product requires a different set up on the processing machines, so FSOJ normally sets up the machines to produce concentrate for the first week of each month. The machine is then set up to produce orange juice for the next 2 weeks. Finally, workers set up the same machines to produce orange icey-poles during the last week of each month.
During the first half of 2010, 20% of the oranges harvested were turned into orange juice concentrate, 50% were processed into orange juice, and 30% became orange icey-poles. The relative sales values of each product were: 75% for orange juice, 20% for orange juice concentrate, and 5% for icey-poles. The orange juice concentrate operation takes up 40% of FSOJ's total factory space. Regular orange juice and orange icey-poles occupy 35% and 25%, respectively.If juice extraction costs are allocated to product lines based on relative sales values, that is, each product line's portion of total sales, the amount allocated to icey-poles will be

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Definitions:

Variety of Flavors

The range or assortment of distinct tastes available in food or drink, contributed by ingredients and preparation methods.

Cultural Influences

The impact of culture on an individual's beliefs, behaviors, and understanding of the world.

Self-Efficacy

The belief in one's abilities to succeed in specific situations or accomplish a task.

Need to Belong

A fundamental human motivation to form and maintain positive, stable interpersonal relationships with others.

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