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Smelly Perfume Company Manufactures and Distributes Several Different Products

question 41

Multiple Choice

Smelly Perfume Company manufactures and distributes several different products.The company currently uses a plantwide allocation method for allocating overhead at a rate of $7 per direct labor hour.Cindy is the department manager of Department C which produces Products J and P.Department C has $16,200 in traceable overhead.Diane is the department manager of Department D which manufactures Product X.Department D has $11,100 in traceable overhead.The product costs (per case of 24 bottles) and other information are as follows: Department D has recently purchased and installed new computerized equipment for Product X.This equipment will increase the overhead costs by $2,700 and decrease labor costs (due to time savings) in Department D by $3.00 per case.Machine hours will not change.If Smelly uses a plantwide rate based on direct labor hours,what is the revised product cost per case for Product J?

Understand different types of organizational structures and their characteristics.

Recognize the impact of organizational design on management and operations.

Identify the features of organic versus mechanistic organizational designs.

Describe the concept of the contingency approach to organizational design.

Definitions:

Weber's Law

A principle in psychology that states the smallest change in a stimulus, such as weight or brightness, that can be detected is a constant proportion of the stimulus level.

Constant Proportion

A principle that, in a specific context, a relationship between certain quantities remains consistent, irrespective of changes in other variables.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time, which varies across different sensory modalities.

Statistical Average

A value that signifies the central or typical value in a set of data, calculated by dividing the sum of all values by the number of values.