Question :
31. Which of the following statements regarding resource utilization not true? A. Resource : 1295617
31. Which of the following statements regarding resource utilization is not true? A. Resource utilization decisions are usually short-term in nature.B. Resource utilization decisions require the identification of a constraint.C. Resource utilization decisions require an analysis of which fixed costs are unavoidable.D. Resource utilization decisions require managers to compute a product’s contribution margin.
32. Which of the following is the least likely to be a consideration in a resource utilization decision? A. Shelf spaceB. Direct labor hoursC. Machine timeD. Fixed costs
33. In resource utilization decisions, managers should: A. minimize the contribution margin per unit.B. minimize the use of the scarce resource.C. maximize the contribution margin per unit of scarce resource.D. maximize the contribution margin per unit.
34. Decker Products manufactures standard and deluxe wooden swing sets. Selected data related to each product is as follows:
Standard
Deluxe
Sales price per unit
$900
$2,000
Direct materials per unit
100
500
Direct labor per unit
300
700
Variable overhead per unit
50
100
Machine hours per unit
4
8
Most of the manufacturing process for the sets is done on machines. There is a maximum of 10,000 machine hours available each year. Refer to the Decker Products information above. What is the contribution margin per unit of limited resource for each type of set? A. Standard: $125.00 Deluxe: $100.00B. Standard: $225.00 Deluxe: $250.00C. Standard: $450.00 Deluxe: $700.00D. Standard: $112.50 Deluxe: $ 87.50
35. Decker Products manufactures standard and deluxe wooden swing sets. Selected data related to each product is as follows:
Standard
Deluxe
Sales price per unit
$900
$2,000
Direct materials per unit
100
500
Direct labor per unit
300
700
Variable overhead per unit
50
100
Machine hours per unit
4
8
Most of the manufacturing process for the sets is done on machines. There is a maximum of 10,000 machine hours available each year. Refer to the Decker Products information above. If demand were strong for both sets and the company could sell an unlimited number of either style, how many of which kind(s) of wooden swing set(s) should be produced in order to maximize profits? A. 2,500 standard setsB. 1,250 deluxe setsC. 833 standard sets and 833 deluxe setsD. 2,500 standard sets and 1,250 deluxe sets
36. Decker Products manufactures standard and deluxe wooden swing sets. Selected data related to each product is as follows:
Standard
Deluxe
Sales price per unit
$900
$2,000
Direct materials per unit
100
500
Direct labor per unit
300
700
Variable overhead per unit
50
100
Machine hours per unit
4
8
Most of the manufacturing process for the sets is done on machines. There is a maximum of 10,000 machine hours available each year. Refer to the Decker Products information above. If demand were strong for both sets and the company could sell an unlimited number of either style, what is the maximum total contribution margin the company could have? A. $ 875,000B. $ 281,250C. $1,125,000D. $1,750,000
37. Kellerman Detailing Service provides two types of car detailing packages: the standard and the deluxe. Selected data related to each package is as follows:
Standard
Deluxe
Sales price
$85
$200
Direct materials
5
10
Direct labor
15
40
Variable overhead
5
15
Direct labor hours
2
3
Most of the car detailing is done by hand. Refer to the Kellerman Detailing Service information above. There is a maximum of 4,050 direct labor hours available each year. If demand were equally strong for both packages and the company could sell an unlimited number of either package, how many of which kind(s) of package(s) should be sold in order to maximize profits? A. 2,025 standardB. 1,350 deluxeC. 1,620 standard and 2,430 deluxeD. 810 standard and 810 deluxe
38. Kellerman Detailing Service provides two types of car detailing packages: the standard and the deluxe. Selected data related to each package is as follows:
Standard
Deluxe
Sales price
$85
$200
Direct materials
5
10
Direct labor
15
40
Variable overhead
5
15
Direct labor hours
2
3
Most of the car detailing is done by hand. Refer to the Kellerman Detailing Service information above. For the upcoming year, there is a maximum of 4,050 direct labor hours available. Management believes that the demand for both the standard and deluxe detailing is limited to 900 each per year. How many standard and deluxe detailing jobs should be sold in the upcoming year in order to maximize profits? A. Standard: 900 Deluxe: 750B. Standard: 675 Deluxe: 900C. Standard: 900 Deluxe: 900D. Standard: 450 Deluxe: 900
39. Kellerman Detailing Service provides two types of car detailing packages: the standard and the deluxe. Selected data related to each package is as follows:
Standard
Deluxe
Sales price
$85
$200
Direct materials
5
10
Direct labor
15
40
Variable overhead
5
15
Direct labor hours
2
3
Most of the car detailing is done by hand. Refer to the Kellerman Detailing Service information above. For the upcoming year, there is a maximum of 4,050 direct labor hours available. Management believes that the demand for both the standard and deluxe detailing is limited to 900 each per year. If the company maximizes profits, what is the maximum contribution margin the company could have in the upcoming year? A. $ 67,500B. $175,500C. $162,000D. $ 60,750
40. Mountaineer Products manufactures two types of tents: single-wall and double-wall. Selected data related to each type of tent is as follows:
Single-wall
Double-wall
Sales price
$250
$375
Direct materials
25
50
Direct labor
20
40
Variable overhead
10
15
Machine hours
2
3
Total fixed overhead is $150,000. Most of the manufacturing process is done on specialized machines. For the upcoming year, there is a maximum of 9,000 machine hours available. Management believes there is sufficient demand for 3,000 single-wall and 4,000 double-wall tents each year. Refer to the Mountaineer Products information above. In order to maximize profits, how many of each type of tent should be produced? A. Single-wall: 3,000 Double-wall: 1,000B. Single-wall: 0 Double-wall: 3,000C. Single-wall: 1,800 Double-wall: 1,800D. Single-wall: 1,500 Double-wall: 4,000
