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7 Which of the following is NOT an effective way of dealing with a production...

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Accounting

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7 Which of the following is NOT an effective way of dealing with a production co n te A Reduce the number of defective units produced at the bottleneck B. Pay overtime to workers assigned to the bottleneck C Pay overtime to workers assigned to work stations located after the bottleneck in the production pros D. Subcontract work that would otherwise require use of the bottleneck. E. Reducing defective units processed through the bottleneck. 8 Frankfort Company was just awarded a patent on a hichly specialized device. The engineer has set strict production guideline. After making a mid-range plan for the company, the company expects the following for the next 2 years. Selling price per unit 120 Variable costs per unit: Direct materials $10 Direct labor $30 Variable overhead Fixed factory overhead cost per year Selling and administrative expense per year (all fixed) $14,600 Year 2,000 2,500 $84,900 Production (units) 2,000 Sales (units) 1,500 Income (absorption costing) $45,100 What is the fixed factory overhead cost per year? A. $51,300 B. $68,400 C. $83,000 D. $166,000 E. None of the above

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