If All Direct Materials Are Added at the End of the Production

question 38

Multiple Choice

If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

• A) 0%.
• B) 100%.
• C) 50%.
• D) none of the above.

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Definitions:

Machine-Hours

A measure of production time in hours by machines, used as a basis for allocating manufacturing overhead in cost accounting.

Activity Rate

The cost driver rate used in activity-based costing to allocate costs to products or services based on the activities required for their production or delivery.

Materials Handling

The process of moving, protecting, storing, and controlling materials and products in any form throughout the manufacturing and distribution process.

Material Moves

Activities involved in the physical relocation of materials within a production facility, which can impact production time and efficiency.