Review 14.1 Manufacturing

Review:
14.1 Manufacturing

By LAURA VILLAFUERTE

The production department of your business makes, or manufactures, and packages the products you sell. 

The cost of manufacturing an item depends on the direct material cost and direct labor costs. 

direct material cost = cost of material / amount of units made with that material



direct labor cost = labor cost per hour / # units made in 1 hour

Multiple Choice

Sue Clark is a machine operator at Modern Plastics. She molds 65 buckets from one container of molding plastic.

Each container costs $2.98.

Clark's machine molds 300 bucket every 20 mins

The direct labor cost is $13.65 per hour.

What is the direct material cost?

• 0.045

• 0.258

• 0.558

• 0.367

Multiple Choice

Sue Clark is a machine operator at Modern Plastics. She molds 65 buckets from one container of molding plastic.

Each container costs $2.98.

Clark's machine molds 300 buckets every 20 mins

The direct labor cost is $13.65 per hour.

What is the direct material cost? $$\frac{2.98}{65}=0.045$$

How many units were produced per hour? $$\frac{300\ buckets}{20\ \min s\ }=\ \ \frac{ }{60\min s}$$

• 300

• 150

• 600

• 900

Multiple Choice

Sue Clark is a machine operator at Modern Plastics. She molds 65 buckets from one container of molding plastic.

Each container costs $2.98.

Clark's machine molds 300 buckets every 20 mins

The direct labor cost is $13.65 per hour.

What is the direct material cost? $$\frac{2.98}{65}=0.045$$

How many units were produced per hour? $$\frac{300\ buckets}{20\ \min s\ }=\ \ \frac{900\ buckets}{60\min s}$$

What is direct labor cost? $$\frac{13.65}{900}=$$

• 0.015

• 0.38

• 0.589

• 0.005

Multiple Choice

Sue Clark is a machine operator at Modern Plastics. She molds 65 buckets from one container of molding plastic.

Each container costs $2.98.

Clark's machine molds 300 buckets every 20 mins

The direct labor cost is $13.65 per hour.

What is the direct material cost? $$\frac{2.98}{65}=0.045$$

How many units were produced per hour? $$\frac{300\ buckets}{20\ \min s\ }=\ \ \frac{900\ buckets}{60\min s}$$

What is direct labor cost? $$\frac{13.65}{900}=0.015$$

• 0.015

• 0.38

• 0.589

• 0.005

Multiple Choice

Sue Clark is a machine operator at Modern Plastics. She molds 65 buckets from one container of molding plastic.

Each container costs $2.98.

Clark's machine molds 300 buckets every 20 mins

The direct labor cost is $13.65 per hour.

What is the direct material cost? $$\frac{2.98}{65}=0.045$$

How many units were produced per hour? $$\frac{300\ buckets}{20\ \min s\ }=\ \ \frac{900\ buckets}{60\min s}$$

What is direct labor cost? $$\frac{13.65}{900}=0.015$$

What is the prime cost per unit?

• 0.060

• 0.380

• 0.589

• 0.005

Practice-Answer the following in your NB