Costs and Expenses Direct Materials $42,000
Direct Labor $66,000
Variable Manu Overhead $28,000
Fixed Manu Overhead $20,000
Total Manu Overhead $48,000
Variable Selling Expense $11,000
Fixed Selling Expense $9,000
Total Selling Expense $20,000
Variable Administrative Expense $7,000
Fixed Administrative Expense $12,000
Total Administrative Expense $19,000
Product costs are equal to:.

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?