Mccubbin corporation keeps careful track of the time required to fill orders. Th

Question

Mccubbin corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The delivery cycle time was: (Round your intermediate calculation and final answer to I decimal place.) Morganti Corporation sells a product for $170 per unit. The product's current sales are 41,800 units and its break-even sales are 33,900 units. What is the margin of safety in dollars? Blue Corporation's standards call for 4,125 direct labor-hours to produce 1,650 units of product. During May 1,150 units were produced and the company worked 1,550 direct labor-hours. The standard hours allowed for May production would be:

Explanation / Answer

33. D. $1343000

   Note :- Margin of safety = sales - break even sale

   = (41800 units * $170 ) - (33900 units* $170)

   = $7106000 - $5763000

= $1343000

34. C . 2875 hour

   Note:-    Standard hour of May = standard hour / standard units * actual units

   = 4125 /1650unit * 1150 units

   =2875 hour

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