Question

1) A customer order of 50 pieces one carat LGDs is to be processed through plant 1. Seed materials are supplied by the customer. The total time for processing the LGDs (including setup and other direct labor) is 500 hr. Direct labor cost is $25.00/hr. The factory overhead is 250% and the corporate overhead rate is 600%. Computer the cost of the job assumes the company's markup (profit) is 60%. 2) the following data are given: direct labor rate = $25.00/hr; applicable factory overhead rate on labor = 60%; capital investment in LGD machine = $500,000; service life of the machine = 10 yr; interest rate -20%; salvage value in 10 yr = 0; and applicable factory overhead rate on machine = 50%. The LGD machine will be operated three 8-hr shift, 350 day/yr. Determine the appropriate hourly rate for the work center 3) The cost of a raw seed is $200/pc. The seeds are processed through 20 processing steps in the plant to become finished stones, and the manufacturing lead time is 6 wk. The production time per processing step is 2 hr, and the machine and labor rate is $25.00/hr. Inspection, material handling, and other related costs average to $20 per processing step by the time the LGD stone is finished. The interest rate used by the company i -20%, and the storage rate s = 13%. Determine the cost per stone and the holding cost.

manufacturing process

Answer 1

Cost of all LGDs to customer = $190000

Question 1 : Solublon : Time to process LG Do = 500 ha Т= бооһя Here T is lime lo process LGD, LB=$25 1h4 Here LB is aired labour cost DC = Tx LB Here DC is direct cost of LEDs Subblebule T- 500hy, 'LB = $25/14 DC = 500 X25 ĐE= $ 250 • Calculation of Factory Overhead cost: The factory overhead.js 250% FOH = 2.5xDC Here FOH is Faclory overhead cool, Here we are assuming that factory overhead porcentage is with respect to. Powine cost Con Direct cost Sulstilule DC=$12500 FOH = 2.5X12500 FOHH = $ 31250 • Calculation of corchorale Overhead cook : The corporate overhead cost is 60004 for calculation. We are assuming that corporate Overhead cost is with respect to frime cost. COH = 6x DC. Here COH is cosporate overhead cool Substituto DC = $12500 Colt = 6x12500 COH =$75000

• Calculation of Total cost of LGDS : TC - DC + FOH + COH Here TC is lotal cost of LGDS : Substitute De= $12500, FOH= $31250 8 COH = $75000 TC = 12500+31260 + 75000 TC = $1 18750 • Celculation of company's forofit: P = 60% of the cost of the jole. Here P is profit of company. P = 0·6x TC subblelife TC= $118750 ein above equation, P= $ 71250 • Calculating of selling facice of. of All LGDS : SP = PATC Here SD is selling fouče of all @ LGD8 to cuslomeu. Subsleluite P$71250 and TC=$118750 SP= 71250 +18750 | SP =$190000 L cost of the jole for customer for all LG Do