Retro Vinyl Inc. Practice Test: Production, Materials, Labor, Overhead, and Capital Spending
Practice test on production planning, direct materials, labor, overhead, SGA, and capital asset assumptions in the Retro Vinyl case study.
8 questions · pass mark 50% · try 5 free
1 What finished goods inventory target does RV use for each quarter-end?
- 5% of the current quarter’s sales
- 10% of the next quarter’s sales
- 15% of the next quarter’s sales
- A fixed 25 cabinets
Ending finished goods inventory is planned at 10% of the next quarter’s projected unit sales.
2 How many board feet of heart of pine wood does each cabinet require?
Each cabinet requires approximately 10 board feet of direct materials.
3 What is the direct materials cost per board foot, in dollars?
The case gives a direct materials cost of $31.00 per board foot.
4 How many direct labor hours are required per cabinet?
Each cabinet requires 2.5 direct labor hours.
5 What is the direct labor wage rate per hour, in dollars?
Direct labor is budgeted at $18 per hour.
3 more questions in this test
Take the full test in MagicalTutor with instant marking, an explanation for every answer, and a score tracked against your weak topics.
Take the full test