High Fly Company Manufactures Model Airplanes -Refer to the Figure

question 30

Multiple Choice

High Fly Company manufactures model airplanes. During the month, it manufactured 10,000 airplanes. Each airplane used an average of 6.5 direct labour hours and an average of 1.5 sheets of aluminum. High Fly normally manufactures 7,500 airplanes each month. Materials and labour standards for making the airplanes are as follows:
$\begin{array}{lr}\text { Direct materials ( } 1 \text { sheet of aluminum } @ \$ 10.00 \text { per sheet) } & \$ 10.00 \\\text { Direct materials (other accessories }(\$ 8.75) & 8.75 \\\text { Direct labour (6 hours }(07.00 \text { per hour) } & 42.00\end{array}$
-Refer to the Figure.What is the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes?

• A)7,500 sheets
• B)10,000 sheets
• C)11,250 sheets
• D)15,000 sheets

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Definitions:

Organizations

Groups of people who come together to achieve specific goals, following a particular structure and set of regulations.

Formalized

The process of establishing official procedures or rules within an organization or system.

Centralize

The process of concentrating control and decision-making authority in a central location or among a small group of individuals.

Span Of Control

The number of subordinates that a manager or supervisor can directly control or oversee effectively.