Jay Bole Is in the Process of Developing a Standard

question 83

Multiple Choice

Jay Bole is in the process of developing a standard for the labour cost of one unit of Product X. According to the design manual, it takes a skilled worker 30 minutes to produce one unit of Product X when the workshop is operating at peak condition. However, Product X is quite complex, and even a skilled worker operating in high efficiency often needs another 5 minutes to adjust the tools, re-oil the machine, and rework some aspects of the product. A skilled worker is paid $30 per hour, while the company pays 20 per cent on-costs on top of this.
Jay decides to develop a practical standard. The standard labour cost for one unit of Product X is

• A) $15.
• B) $17.50.
• C) $18.
• D) $21.

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Definitions:

Section 2-608

A provision within the Uniform Commercial Code that allows buyers to revoke acceptance of goods under certain conditions if the goods fail to conform substantially to the contract.

Right to Revoke

The legal ability to cancel or withdraw from a contract or agreement within a certain period of time.

Sales Contracts

Legal agreements between buyers and sellers detailing the terms and conditions of a sale, including price, delivery, and product specifications.

Commercial Unit

A term used in law referring to goods or property that are considered a single whole for purposes of sale or lease, often due to their interconnectedness or the context of their use.