In a Recent Period 12,250 Units Were Made and There

question 53

Multiple Choice

In a recent period 12,250 units were made and there was a favorable labor efficiency variance of $22,500. If 41,000 labor-hours were worked and the standard wage rate was $12 per labor-hour, the standard hours allowed per unit of output is closest to:

• A) 3.19
• B) 3.35
• C) 3.50
• D) 6.00

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Definitions:

Mass Production

The manufacturing of large quantities of standardized products, often utilizing assembly line techniques.

Small-batch Production

A production process characterized by the manufacturing of small quantities of goods tailored to specific customer needs or market demands.

Customized Saddles

Specially designed and made saddles that are tailored to fit the specific measurements and requirements of an individual rider or horse.

Cellular Layouts

Refers to the arrangement of machinery and equipment in closely linked groups or cells that process parts in a workpiece flow, optimizing efficiency and minimizing movement.