Answer (A) is correct . Projected unit sales for November equal 5,000, of which 2,500 (5,000 × 50%) should come from October’s ending inventory. Ending inventory for November should be 2,100 units (4,200 unit sales projected for December × 50%). Accordingly, output for November should be 4,600 units (5,000 – 2,500 + 2,100), and these units will require 2,300 direct labor hours for assembly [4,600 units × (30 minutes ÷ 60 minutes per hour)]. The full-time equivalent number of employees needed to assemble 4,600 units is therefore 14.375 (2,300 hours ÷ 160?hours per full-time employee).
Answer (B) is incorrect because The figure of 28.75 assumes 4,600 hours of assembly.
Answer (C) is incorrect because The figure of 15.625 assumes 2,500 hours of assembly.
Answer (D) is incorrect because The figure of 31.25 assumes 5,000 hours of assembly.
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Given that a full-time employee works 160 hours per month, no overtime is allowed, and part-time employees may be used, how many full-time equivalent employees does Mountain need to assemble the output of finished units in November?