Motorsports, Inc. builds two different types of motors. Model A has averaged 20,000 units annually, and Model B has average 30,000 units annually. The firm has historically used 80,000 direct labor hours and 10,000 hours of machine time per year to build Model A. Also, 150,000 annual direct labor hours have been allocated to Model B, along with 60,000 hours of annual machine time. What is the CPOPF planning factor for direct labor for Model A?
A) 0.25
B) 4.00
C) 4.50
D) 5.00
E) 4.60

Question

Quizplus · Accepted Answer

The CPOPF (Cost per Output Planning Factor) for direct labor for Model A is calculated by dividing the total direct labor hours allocated to Model A by the annual units produced. For Model A, this is 80,000 direct labor hours divided by 20,000 units, which equals 4.00.