Penrith Chocolate Company Makes Internal Transfers at 160% of Full

question 92

Multiple Choice

Penrith Chocolate Company makes internal transfers at 160% of full cost.The Dairy Milk Division purchases 4000 litres of milk per day,on average,from a local supplier who delivers the milk for $2.00 per litre via an external shipper.To reduce costs,the company located an independent supplier in Victoria who is willing to sell 4000 litres at $1.50 per litre,delivered to Penrith Chocolate Company's Shipping Division in Penrith.The company's Shipping Division in Penrith has excess capacity and can ship the 4000 litres at a variable cost of $0.45 per litre.What is the total cost of purchasing the milk from the Victorian supplier and shipping it to the Dairy Milk Division?

• A)$12 480
• B)$7800
• C)$6000
• D)$8000

Understand the basic principles of cardiorespiratory fitness and energy dynamics during exercise.

Recognize the link between exercise intensity, frequency, and overall health benefits.

Identify the physiological adaptations that occur with improved cardiorespiratory fitness.

Apply knowledge of exercise physiology to make informed decisions about personal or advised fitness routines.

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Definitions:

Standard Labour Hours

The predetermined amount of labor time that is expected to be necessary to produce one unit of a product or complete a process.

Material Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantities purchased.

Standard Quantity

The preset amount of materials or inputs theoretically required to produce a single unit of product under normal operating conditions.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.