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:

Queuing System

A model used to analyze the behavior of queues or waiting lines, focusing on predicting wait times and improving service efficiency in various service or production settings.

Finite Population

A population that contains a finite or countable number of elements or observations, where the population size is known.

Average Service Time

This metric represents the mean time required to serve a customer or complete a process, useful in evaluating the efficiency of service operations.