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Stow Machining is a compression-molding plastics company that specializes in high priced jar covers for the cosmetics industry. Because appearance is so important, customers can reject covers even for minor blemishes that do not affect the cover's function. Therefore, preventing dust and contamination in the molding process is an ongoing problem for the company. Each order requires a machine setup that can be complex. The company recently implemented some major process improvements. The value-added analysis of the compression-molding process for placing good pieces in inventory appears below:

Setup mechanics earn $25 per hour. All other factory labor earns $10 per hour.
-The savings for each 1,000 jar covers for setup labor after implementing the changes is:
A) $ 350
B) $2,100
C) $ 35
D) $ 420

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Stow Machining is a compression-molding plastics company that specializes in high priced jar covers for the cosmetics industry. Because appearance is so important, customers can reject covers even for minor blemishes that do not affect the cover's function. Therefore, preventing dust and contamination in the molding process is an ongoing problem for the company. Each order requires a machine setup that can be complex. The company recently implemented some major process improvements. The value-added analysis of the compression-molding process for placing good pieces in inventory appears below:
  
Setup mechanics earn $25 per hour. All other factory labor earns $10 per hour.
-The savings for each 1,000 jar covers for setup labor after implementing the changes is:
A) $ 350 
B) $2,100 
C) $ 35 
D) $ 420

Quizplus · Accepted Answer

The savings for each 1,000 jar covers can be calculated based on the information provided about the changes in setup labor costs or efficiencies. Without specific details on the calculation, choice A ($350) is identified as the correct answer based on the question's context.

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