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ACCT 3300 Ch 7(3) Questions with Correct Answers
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ACCT 3300 Ch 7(3) Questions with Correct Answers
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ACCT 3300 Ch 7(3) Questions with Correct AnswersFact Pattern: Bakker Industries sells three products (Products 611, 613,
and 615) that it manufactures in a factory consisting of one department.
Both labor and machine time are applied to the products. Bakker's
management is planning its production schedule for the next several
months. There are labor shortages in the community. Some of the
machines will be out of service for extensive overhauling. Available
machine and labor time for each of the next 6 months is listed below.
Monthly Capacity Availability
Normal machine capacity in machine hours
3,500
Capacity of machines being repaired in machine hours
(500)
Available machine capacity in machine hours
3,000
Labor capacity in direct labor hours
4,000
Available labor in direct labor hours
3,700
Labor and Machine
Specifications per Unit of Product
Product
Labor and Machine Time
611
Direct labor hours
,2
Machine hours
2
613
Direct labor hours
1
Machine hours
1
615 Correct Answer-B. 300 hours.
The method used to maximize operating income when faced with some
bottleneck and some non-bottleneck operations is described as
A. Sensitivity analysis.
B. Theory of constraints.
C. Suboptimal decision making.
D. Total factor productivity. Correct Answer-B. Theory of constraints.
Fact Pattern: Bombastic Bathrooms manufactures a certain style of
plumbing fixture in four materials. Price and cost data for each are given
below:
Brass
Chrome
,Nickel
Aluminum
Selling Price
$250
$220
$375
$400
Direct Materials Cost
$100
$90
$195
$210
Direct Labor Cost
$70
$70
$70
$70
Manufacturing overhead
$30
$35
$45
$65
Hours:
, Boring department
3
3
6
6
Machining department
4
5
4
6
Finishing department
1
3
3
4
Inspection & packing
1
1
1
1
Bombastic is currently producing equal quantities of each fixture.
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