A Time-And-Motion Study Revealed That It Should Take 3 Hours

question 107

Multiple Choice

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7.5 hours to produce. Labor is $18 per hour. The value-added costs are

• A)$27.
• B)$135.
• C)$81.
• D)$54.

---

Definitions:

Dividends

Disbursements issued by a company to its shareholders, usually originating from the company's earnings.

Account Group

A classification method used in accounting to organize financial statements, grouping similar accounts together for easier reporting and analysis.

Fees Earned

Revenue generated from services provided by a company or individual over a specific period.

Account Group

Sets of accounts that are categorized together for the purpose of organization, reporting, or management purposes in accounting.