Outose Concept Manufactures Small Tables in Its Processing Department

question 146

Multiple Choice

Outose Concept manufactures small tables in its Processing Department.Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Before inspection,some units are spoiled due to undetectable materials defects.Inspection occurs when units are 60% converted.Spoiled units generally constitute 6% of the good units.Data for December 2017 are as follows:

Costs for December:

What is the number of total spoiled units?

• A)10,435 units
• B)4338 units
• C)4162 units
• D)8500 units

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Definitions:

Carpal Tunnel Syndrome

A condition caused by compression of the median nerve within the carpal tunnel of the wrist, leading to pain, tingling, and numbness in the hand.

Median Nerve

A major nerve of the upper limb in humans, running down the arm and the forearm and into the hand, it is responsible for sensations and movements in parts of the hand.

Sensory Neurons

Nerve cells that are responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Endorphins

Natural chemicals in the body that interact with opiate receptors to reduce perceptions of pain and can induce feelings of euphoria and well-being.