Harnish Corporation Is Developing Standards for Its Products

question 76

Multiple Choice

Harnish Corporation is developing standards for its products. One product requires an input that is purchased for $55.00 per kilogram from the supplier. By paying cash, the company gets a discount of 8% off this purchase price. Shipping costs from the supplier's warehouse amount to $5.17 per kilogram. Receiving costs are $0.28 per kilogram. Each unit of output of the product requires 0.75 kilogram of this input. The allowance for waste and spoilage is 0.04 kilogram of this input for each unit of output. The allowance for rejects is 0.11 kilogram of this input for each unit of output.
-The standard quantity in kilograms of this input per unit of output should be:

• A) 0.75
• B) 0.71
• C) 0.90
• D) 0.60

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Definitions:

Low-Birth-Weight

Refers to babies born with a weight of less than 2,500 grams (5 pounds, 8 ounces), often associated with higher risks of health issues.

Folic Acid

A B-vitamin essential for healthy cell growth and development, particularly important for pregnant women to prevent birth defects.

Leafy Vegetables

A category of vegetables that includes plants with edible leaves such as spinach, kale, and lettuce, known for their nutritional benefits.

Motor Development

The advancement of muscle coordination and the capacity to maneuver and manage bodily movements.