Production Estimates for August Are as Follows: for Each

question 101

Multiple Choice

Production estimates for August are as follows: For each unit produced, the direct materials requirements are as follows:
The total direct materials purchases (assuming no beginning or ending inventory of material) of materials A and B required for August production is:

• A) $1,080,000 for A; $1,296,000 for B
• B) $1,080,000 for A; $648,000 for B
• C) $1,125,000 for A; $675,000 for B
• D) $1,170,000 for A; $702,000 for B

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Definitions:

Immediate Predecessors

Activities or tasks that must be completed directly before a subsequent activity or task can begin, in a project or process sequence.

Critical Path

The longest sequence of tasks in a project, which determines the shortest possible duration to complete the project.

Slack

The amount of time a task in a project can be delayed without causing a delay to subsequent tasks or the project finish date.

Activity Duration

The total time taken from the start to the completion of an activity or task within a project.