Scenario 11.3 Use This Bill of Materials and Inventory Records to Answer

question 7

Multiple Choice

Scenario 11.3
Use this bill of materials and inventory records to answer the questions.
-Use Scenario 11.3 to answer this question.How many units of F are required to produce 17 end items?

• A)332
• B)326
• C)340
• D)314

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Definitions:

Direct Labour Dollars

The total amount of money spent on wages for workers who are directly involved in the manufacturing process.

Overhead Allocation Bases

Criteria or measures used to distribute indirect costs to different products, services, or departments.

Direct Labour Hours

The total hours worked by employees that are directly involved in the manufacturing process.

ABC System

Activity-Based Costing System; a method of allocating overhead and indirect costs to specific products or services based on the activities they require.