This is a comprehensive problem comparing absorption costing and ABC. It is suggested that as you progress through the problem, keep track of the correct solutions, because these values will be used again later in the problem set.<\/p>
<\/p>
Dehli Inkstone specializes in inkstone creation. Each finished inkstone needs 1 pounds of special materials which cost $20 a pound. (One pound contains 16 ounces.) Drilling requires 1 direct labor hours, for which workers are paid $10 per hour, and 40 minutes of machine time. The preliminary product (a 'basic') is inspected to ensure that it is sound. Fifteen percent of the basics are rejected. It is not possible to rework these, and they have no salvage value. Each approved stone is handed to a master craftsperson who spends two hours making a 'Standard' product or three hours creating a 'Masterpiece'. Standards use half an hour of machine time and Masterpieces one hour. Finished inkstones are inspected again before packing. Four percent of finished products fail the final quality control assessment and are destroyed. Crafts persons are paid $18 per hour. It takes a 'basic' worker six minutes to package each inkstone in bubble wrap and a shipping carton, which cost 50 cents in materials and weigh 6 ounces in total.<\/p>
<\/p>
Total overheads are estimated to be $587,400 per year and 97,900 direct labor hours are budgeted. Production plans for the year call for 60% of output to be Standard inkstones and the balance Masterpieces.<\/p>
<\/p>
For a Standard inkstone, which is true of the materials input needed (to 3 significant figures)?<\/p>
Total weight is 2.279 pounds<\/p>
Total weight is 2.213 pounds<\/p>
Total weight is 2.140 pounds<\/p>
Total weight is 1.875 pounds<\/p>
None of the above<\/p>", "transcribed_text": "", "related_book": { "title": "Core Macroeconomics", "isbn": "978-1429278478, 1429278471, 978-1429278492, 1429278498, 1464191433, 978-1464191435", "edition": "3rd edition", "authors": "Eric Chiang", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/648.jpg", "uri": "\/textbooks\/core-macroeconomics-3rd-edition-648", "see_more_uri": "" }, "free_related_book": { "isbn": "0814439799", "uri": "\/textbooks\/raising-humans-in-a-digital-world-helping-kids-build-a-healthy-relationship-with-technology-special-edition-978-0814439791-306990", "name": "Raising Humans In A Digital World Helping Kids Build A Healthy Relationship With Technology", "edition": "Special Edition" }, "question_posted": "2024-06-28 09:24:21", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/why-is-it-desirable-to-increase-a-companys-inventory-turnover", "description": "Why is it desirable to increase a companys inventory turnover ratio ?", "stars": 3 }, { "url": "\/study-help\/coaching-supervision-a-practical-guide-for-supervisees\/describe-an-intervention-on-how-to-stimulate-jobcrafting-behaviour-1980265", "description": "describe an intervention on how to stimulate job-crafting behaviour.", "stars": 3 }, { "url": "\/sunrise-vitamin-company-manufactures-three-different-types-of-vitamins-vitamin", "description": "Sunrise Vitamin Company manufactures three different types of vita-mins: vitamin A, vitamin B, and a multivitamin. The company uses four operations to manufacture the vitamins: mixing, tableting,...", "stars": 3 }, { "url": "\/study-help\/questions\/which-type-of-vlan-hopping-attack-may-be-prevented-9890668", "description": "Which type of VLAN - hopping attack may be prevented by designating an unused VLAN as the native VLAN?", "stars": 3 }, { "url": "\/study-help\/questions\/g-eztomheducationcom-question-5-hw-chapter-accessuh-mcgraw-hill-3767887", "description": "G ezto.mheducation.com Question 5 - HW Chapter AccessUH McGraw Hill - Prechapter assignments... es uh - Yahoo Search Results Saved HW Chapter 11 i 5 Molo Oil Company produces gasoline, home heating...", "stars": 3 }, { "url": "\/study-help\/questions\/when-patients-do-not-pay-their-bills-and-the-practice-5720790", "description": "When patients do not pay their bills, and the practice is forced to write off the account, the amount owed is classified as __________ in accounting terms.\" Group of answer choices Bad Debt Accounts...", "stars": 3 }, { "url": "\/study-help\/questions\/sues-product-mix-problem-sues-crackpot-pottery-company-is-a-818349", "description": "Sue's product mix problem. Sue's Crackpot Pottery Company is a one-person operation (headed by Sue) set up to make small handcrafted pottery items. Sue has designed two products, a turned flowerpot...", "stars": 3 }, { "url": "\/study-help\/questions\/evaluate-own-performance-and-adjust-own-performance-if-required-to-819241", "description": "Evaluate own performance and adjust own performance if required to align with organisational values eg: do you make expectations clear do you lead by example do you provide appropriate coaching,...", "stars": 3 }, { "url": "\/study-help\/questions\/discussion-questions-what-ethical-issues-are-the-cause-of-the-5693274", "description": "Discussion Questions What ethical issues are the cause of the scandal? Winterkorn said that \"I am not aware of any wrongdoing on my part.\" What do you think VW customers think? Investors? Employees?...", "stars": 3 }, { "url": "\/study-help\/questions\/the-technology-company-that-you-work-for-is-designing-a-819417", "description": "The technology company that you work for is designing a new microchip to be used in school classrooms. Your job as the employee is to determine the specs of the chip. They have told you that it will...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/f-4283241", "next": "\/study-help\/questions\/hello-i-am-looking-to-find-the-numbers-that-go-4283243" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "This is a comprehensive problem comparing absorption costing and ABC. It is", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/this-is-a-comprehensive-problem-comparing-absorption-costing-and-abc-4283242" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } "1" } }