(Answered) : Production Inventory Mobile Cabinet Company Produces Cabinets Used Mobile Motor Homes Cabi Q28132102

PRODUCTION INVENTORY. The Mobile Cabinet Company producescabinets used in mobile and motor homes. Cabinets produced formotor homes are smaller and made from less expensive materials thanare those for mobile homes. The home office in Ames, Iowa, has justdistributed to its individual manufacturing centers the productionquotas required during the upcoming summer quarter. The scheduledproduction requirements for the Lexington, Kentucky, plant aregiven in the following table.

Each motor home cabinet requires three man-hours to produce,whereas each mobile home cabinet requires five man-hours. Laborrates normally average $18 per hour. During July and August,however, when Mobile employs many part-time