36. Question Content Area

Information about Bodacious Corporation is as follows:

2018 2019 Output (units)120,000126,000Selling price per unit$25.00$25.00 Input quantities: Materials (pounds)6,0006,000Labor (hours)4,8004,875 Input prices: Materials (per pound)$5.00$5.50Labor (per hour)7.007.50

By how much did profits change as a result of changes in productivity related to labor?

a. $1,237.50 decrease

b. $1,237.50 increase

c. $1,650.00 decrease

d. $1,650.00 increase

37. Which of the following is true of non-value-added activities?

a. These activities result from adopting new technology for the production process.

b. These activities are a source of waste in the value stream of a product.

c. These activities are identified only after the finished goods reaches final customers.

d. These activities ensure that no rework is required as the final product has zero-defects.

38. The following information relates to Cranmore Manufacturing: To produce a unit of product:

Cutting department5 minutes per unitWelding department8 minutes per unitPolishing department3 minutes per unitFinishing department4 minutes per unit

There is a wait time of 5 minutes before the cutting department begins a batch, 15 minutes between the cutting and welding departments, a move and pre-wait between welding and polishing of 12 minutes, and a move and pre-wait between the polishing and finishing departments of 8 minutes. What is the production rate?

a. 20.0 units per hour

b. 15.0 units per hour

c. 7.5 units per hour

d. 12.0 units per hour