plz someone help :)
The management accountant of a furniture manufacturer is developing a standard for the labour cost of one massage chair. When operating at peak efficiency, a skilled worker will take 2020 hours to produce assemble one massage chair and 20 minutes to package one massage chair. However, due to the complexity of manufacturing the chair, even a skilled worker who is highly efficient often needs another 2.52.5 hr to adjust the tools, re-oil relevant machinery and rework some parts of the chair prior to packaging. A skilled worker is paid $40$40 per hour which excludes on-costs of 20 per cent.
Question 1
If the company adopts practical standards, what is the standard labour cost for one massage chair? Round to 2 dec places if required.
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Question 2
Assume that for every 6969 massage chairs assembled, 2525 massage chairs will be defective and will have to discarded. If the company adopts practical standards, recalculate the standard labour cost for one massage chair. Round to 2 dec places if required.
Labor Hours needed to produce and pack a massaging chair | |
Hours needed to produce | 20 |
Hours to make it ready for packaging | 2.5 |
Hours to pack (20/60) | 0.333333333 |
Total Hours | 22.83 |
Rate per hour | 40 |
Labor Charge per chair without on-cost | 913.3333333 |
Add: On-Cost 20% | 182.6666667 |
Total Labor Charge | 1096 |
Chairs Assembled | 69 |
Labor Cost for 85 chairs | |
Hours needed to produce | 20 |
Rate per hour plus on-cost = 40*(1+20%) | 48 |
Labor Cost for 69 chairs | 66240 |
Hours to check and pack the chairs (2.5+.3333) | 2.83 |
Chairs without defect (69-25) | 44 |
Cost to check and pack 44 chairs | 5984 |
Total Labor Cost to produce and pack 44 chairs (5984+66240) | 72224 |
Standard Labor Cost to produce one chair (72224/44) | $1641.45 |
plz someone help :) The management accountant of a furniture manufacturer is developing a standard for...