Use the Information Below to Answer the Following Question(s)

question 152

Multiple Choice

Use the information below to answer the following question(s) .
Marguerite Inc..expects to sell 20,000 pool cues for $20.00 each.Direct materials costs are $2.00,direct manufacturing labour is $12.00,and manufacturing overhead is $0.80 per pool cue.Each pool cue requires 0.5 kilograms (kg) of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs;the units in beginning inventory are completed before new units are started..Each pool cue requires one hour of direct labour,and manufacturing overhead is allocated based on direct labour hours.The following inventory levels are expected to apply to 2016:

-How many kilograms of material will need to be purchased for 2016 production and inventory requirements?

• A)11,500 kg
• B)10,700 kg
• C)10,300 kg
• D)10,500 kg
• E)10,000 kg

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Definitions:

Project Crashing

A project management technique that involves reducing the project duration by adding resources to critical path activities, often at increased costs.

Gantt Charts

Planning charts used to schedule resources and allocate time.

Timeline

A representation of a sequence of events in chronological order.

Interrelationships

Mutual or reciprocal relations between components of a system, indicating how they influence or interact with each other within a framework or process.