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Free CMA Exam Braindumps (page: 106)

Page 106 of 336
PDF with 1336 Questions
View Related Case Study

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 me 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.


What is the excess (deficiency) for machine hours?

  1. (700) hours
  2. (400) hours
  3. 0 hours,
  4. 1,100 hours.

Answer(s): B

Explanation:

The excess (deficiency) for machine hours ma given department is found by initially multiplying machine hours required per unit for that product by demand for that product. In this case, the total would be 1,000 for 611.400 for 613. and 2,000 for 615. The next step is to add these numbers together to get 3,400, and subtract that from machine hours available, 3,000. Therefore, the excess (deficiency) for machine hours would be a 400--hour deficiency (3,000 hours -- 3,400 hours).



View Related Case Study

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


What is the excess (deficiency) for labor hours?

  1. (100) hours
  2. 300 hours.
  3. 700 hours
  4. 1.800 hours.

Answer(s): B

Explanation:

The excess (deficiency) for labor hours in a given department is found by initial' multipl'4ng the labor hours required to produce a product by the demand for that product. The totals would then be 1.000 for product 611,400 for product 613, and 2.000 for product 615. The totals are then added together to get 3,400 hours. This number is then subtracted from labor hours available, 3,700. to get an excess of 300 labor hours.



View Related Case Study

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


What is product 615's contribution per machine hour?

  1. $54.50
    B $58
  2. $109
  3. $167

Answer(s): A

Explanation:

The contribution per machine hour of a given product is found by initial' calculating the contribution margin. Product 615 has a selling price of $167 and variable costs of $58. This gives a contribution margin of $109 ($167 --$58). The contribution per machine hour is then found by dividing the contribution per unit by the machine hours required to produce the product, or $109 divided by 2 hours to give a contribution per machine hour of $54.50.



View Related Case Study

Bakker Industries seals 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 me next 6 months is listed below


If Bakker's strategy is to maximize dollar profits, how many units of product 615 will be produced?

  1. 400 units
  2. 500 units.
  3. 800 units
  4. 1.000 units.

Answer(s): C

Explanation:

When a company has a scarce resource machine hour capacity, the company should maximize contribution per machine hour to maximize overall profits. Because product 615 has the lowest contribution per machine hour of the three products, product 615 will be produced using the remaining hours after product 613 and product 611 have been produced to equal demand. Therefore the 400 hours needed to produce product 613 and the 1,000 hours needed to produce product 611 are subtracted from the 3.000 available machine hours. This leaves a total of 1,600 machine hours for product 615, which equates to 800 units being produced.



Page 106 of 336



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