Johnny Now, Inc

question 3

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 machine time requirement for department H next period?

• A) 5,184 hours
• B) 13,680 hours
• C) 14,400 hours
• D) 21,600 hours
• E) 16,416 hours

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Definitions:

Material Misrepresentation

False or misleading statements that significantly affect another party's decision in a transaction.

Reasonable Person

A hypothetical individual in the legal system who exercises average care, skill, and judgment in conduct and is used as a standard to assess behavior.

Duress By Physical Force

The use of physical force or threats to compel someone to act against their will or to consent to an agreement.

Duress By Improper Threat

A situation where an individual is forced or coerced into a contract or legal agreement under threats that are unlawful or unethical.