Answer the Following Questions Using the Information Below

question 47

Multiple Choice

Answer the following questions using the information below:
Flify Manufacturing Inc., incurred total indirect manufacturing labor costs of $500,000. The company is labor intensive. Total labor hours during the period were 5,000. Using qualitative analysis, the manager and the management accountant determine that over the period the indirect manufacturing labor costs are mixed costs with only one cost driver-labor-hours. They separated the total indirect manufacturing labor costs into costs that are fixed ($110,000 based on 8,000 hours of labor) and costs that are variable ($390,000) based on the number of labor-hours used. The company has estimated 7,000 labor hours during the next period.
-What will be the variable cost per hour?

• A) $78
• B) $48.75
• C) $62.50
• D) $100

Understand the criteria for rotor replacement or reconditioning, including machine-to, discard limits, and rotor examination parameters.

Learn how to measure rotor parallelism and the importance of appropriate tools in brake servicing.

Acquire knowledge on inspecting rotor vents and the tools required for such inspections.

Grasp the considerations for when and why to resurface rotors and apply these standards equally to both sides.

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Definitions:

Sub-Contracting

The practice of a company hiring a third-party to perform tasks, handle operations or provide services that are either difficult to manage or outside the company's expertise.

Discount Rate

The discount rate that is used to compute the present value of forthcoming cash flows.

Annual Payments

Recurring payments made once a year.

Compounded Monthly

Determining interest on a monthly schedule by including both the initial principal and previously earned interest in the calculation.