At the Beginning of 2011, Peters Company Installed a JIT

question 59

Multiple Choice

At the beginning of 2011, Peters Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products:
-The theoretical velocity per hour is

• A) 4.0 units.
• B) 3.6 units.
• C) 1.1 units.
• D) 1.0 units.

---

Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.

Variable Manufacturing Overhead

Indirect manufacturing costs that vary with the production volume, such as utilities for machinery.

Standard Costs

Pre-determined or estimated costs used for planning and control purposes, often used to measure performance by comparing them with actual costs.

Direct Labour

The wages and other compensation paid to employees who are directly involved in producing goods or providing services.