If Estimated Direct Raw Materials and Direct Labour Costs Are

question 14

Multiple Choice

If estimated direct raw materials and direct labour costs are $42 000 in total, what is the direct cost per unit if forecast production is 6000 units?

• A) $7
• B) $8
• C) $14
• D) $18

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Definitions:

Control Chart Limits

the pre-determined upper and lower boundaries on a control chart within which a process is considered to be in control and performing as expected.

P-chart

A type of control chart used in statistical quality control to monitor the proportion of defective units in a process.

Defect Rate

The frequency at which defects or errors occur in a manufacturing process or product, expressed as a percentage or the number of defects per unit.

Billing Process

The procedure involving the issuance of invoices and collection of payments from customers.