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

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Accounting

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- Which of the following is NOT an effective way of dealing with a production constraint (ie, bottleneck) Raduce the number of defective units produced at the bottleneck. R Pay overtime to workers assigned to the bottleneck. C Redoxing defective units processed through the bottleneck. D. Pay overtime to workers assigned to work stations located after the bottleneck in the production process. E Subcontract work that would otherwise require use of the bottleneck. 8 Frankdort Company was just awarded a patent on a highly-specialized device. The engineer has set a strict production guideline. After making a mid-range plan for the company, the company expects the following for the next 2 years $ 130 Selling price per unit 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 Production (units) 2,000 2,000 Sales (units) 1,500 2,500 Income (absorption costing) $45,100 $84,900 What is the fixed factory overhead cost per year? A. 566,300 B. 588,400 C. 5103.000 D. $206,000 E None of the above

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