The Production Manager for Beer Etc

question 90

Multiple Choice

The production manager for Beer etc. produces two kinds of beer: light (L) and dark (D) . Two resources used to produce beer are malt and wheat. The manager can obtain at most 4800 oz of malt per week and at most 3200 oz of wheat per week, respectively. Each bottle of light beer requires 12 oz of malt and 4 oz of wheat, while a bottle of dark beer uses 8 oz of malt and 8 oz of wheat. Profits for light beer are $2 per bottle, and profits for dark beer are $1 per bottle.
-What is the optimal weekly profit?

• A) $1000
• B) $900
• C) $800
• D) $700

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Definitions:

Variable Manufacturing Overhead

Costs in the production process that change with the volume of production, such as utility costs or raw materials.

Predetermined Overhead Rates

Estimated rates used to allocate overhead costs to products or activities, based on selected bases like labor hours or machine hours.

Machine-Hours

A unit measure representing the operating time of machinery, used in calculating production costs and allocating expenses based on machine usage.

Molding

The process of shaping a material by introducing it into a rigid frame called a mold.