Johnny Now, Inc

question 54

Multiple Choice

Johnny Now, Inc. produces two different models of outhouses. Demand next period is expected to be 12,000 and 18,000 units for Models A and B, respectively. Model A has CPOPF planning factors of 0.75 and 0.60 for direct labor and machine time, respectively. Model B has CPOPF planning factors of 0.50 and 0.80 for direct labor and machine time, respectively. Historically department G uses 24% of the direct labor and machine time for these products, while department H uses the remaining 76%. What is the direct labor time requirement for department G next period?

• A) 4,320 hours
• B) 13,680 hours
• C) 18,000 hours
• D) 9,000 hours
• E) 5,184 hours

---

Definitions:

Red-money Income

Is not a standard economic term and may refer to disposable income after taxes, but without an established definition, it's speculative.

Trust

A firm belief in the reliability, truth, ability, or strength of someone or something, often considered fundamental in social, economic, and political relationships.

Government

The governing body of a nation, state, or community, charged with directing and administering public policy and affairs.

Americans

Citizens of the United States of America or individuals associated with the country through residency, culture, or heritage.