Week |
1 |
2 |
3 |
4 |
5 |
6 |
Leather |
15 |
20 |
18 |
21 |
15 |
13 |
Fabric |
65 |
60 |
62 |
59 |
65 |
67 |
Work Center |
Time (hours/unit) |
|
Leather |
Fabric |
|
Sewing |
0.5 |
0.4 |
Assembly |
0.7 |
0.6 |
Total |
1.2 |
1.0 |
Sewing labor hours= (unit time of leather * demand of week i *
percentage of Sewing work)
+(unit time of fabric * demand of week i *percentage of Sewing
work)
Assembly labor hours= (unit time of leather * demand of week i
*percentage of Assembly work)+(unit time of fabric* demand of week
i *percentage of Assembly work)
Sewing labor hours
Week 1 = (0.5*15*0.4)+(0.4*65*0.4) = 13.4
Week 2 = (0.5*20*0.4)+(0.4*60*0.4) = 13.6
Week 3 = (0.5*18*0.4)+(0.4*62*0.4) = 13.52
Week 4 = (0.5*21*0.4)+(0.4*59*0.4) = 13.64
Week 5 = (0.5*15*0.4)+(0.4*65*0.4) = 13.4
Week 6 = (0.5*13*0.4)+(0.4*67*0.4) = 13.32
Assembly labor hours
Week 1 = (0.7*15*0.6)+(0.6*65*0.6) = 29.7
Week 2 = (0.7*20*0.6)+(0.6*60*0.6) = 30
Week 3 = (0.7*18*0.6)+(0.6*62*0.6) = 29.88
Week 4 = (0.7*21*0.6)+(0.6*59*0.6) = 30.06
Week 5 = (0.7*15*0.6)+(0.6*65*0.6) = 29.7
Week 6 = (0.7*13*0.6)+(0.6*67*0.6) = 29.58
A firm makes car seats for an automaker in two varieties: leather and fabric. The standard labor-hours for these are 1.2...
A firm makes car seats for an automaker in two varieties: leather and fabric. The standard labor hours for these are 1.4 and 0.9 hours, respectively. The seats are made in two work centers, sewing and assembly, where the average percentage of work has been 55 percent for sewing and 45 percent for assembly. Given the following schedule for the next six weeks, how many labor hours are needed at the sewing work center in week 1? week 1 2...
Required information Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow. Number of labor hours Number of material moves Number of setups Fabric Case Leather Case 15,000 10,000 570 60 930 90 Total estimated overhead...
Required information Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow: Number of labor hours Number of material moves Number of setups Fabric Case Leather Case 15,000 10,000 570 930 60 90 Total estimated overhead...
"Two dollars of gross margin per briefcase? That's ridiculous!" roared Roy Thurmond, president of First-Line Cases, Inc. "Why do we go on producing those standard briefcases when we’re able to make over $10 per unit on our specialty items? Maybe it’s time to get out of the standard line and focus the whole plant on specialty work." Mr. Thurmond was referring to a summary of unit costs and revenues that he had just received from the company’s accounting department: Standard...
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need help with all 3 Required questions.
Analytical Thinking [LO4-2, LO4-3, LO4-4] Two dollars of gross margin per briefcase? That's ridiculousr roared Roy Thurmond, president of First-Line Cases, Inc. "Why do we go on producing those standard briefcases when we're able to make over $12 per unit on our specialty items? Maybe it's time to get out of the standard line and focus the whole plant on specialty work. Mr. Thurmond was referring to a summary of unit costs...
Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Type of Admission Standard Time to Complete Admission Record Unscheduled 30 min. Scheduled 15 min. The unscheduled admission took longer because name, address, and insurance information needed to be determined and verified at the time of admission. Information was collected on scheduled admissions prior to admitting the patient, thus requiring less time in admissions. The Admissions Department employs four...
"Two dollars of gross margin per briefcase? That's ridiculous!" roared Roy Thurmond, president of First-Line Cases, Inc. "Why do we go on producing those standard briefcases when we're able to make over $12 per unit on our specialty items? Maybe it's time to get out of the standard line and focus the whole plant on specialty work." Mr. Thurmond was referring to a summary of unit costs and revenues that he had just received from the company's accounting department: Standard...
Analytical Thinking [LO4-2, LO4-3, LO4-4] "Two dollars of gross margin per briefcase? That's ridiculous!" roared Roy Thurmond, president of First-Line Cases, Inc. "Why do we go on producing those standard briefcases when we’re able to make over $9 per unit on our specialty items? Maybe it’s time to get out of the standard line and focus the whole plant on specialty work." Mr. Thurmond was referring to a summary of unit costs and revenues that he had just received from...
Two dollars of gross margin per briefcase? That's ridiculous!" roared Roy Thurmond, president of First-Line Cases, Inc. "Why do we go on producing those standard briefcases when we’re able to make over $10 per unit on our specialty items? Maybe it’s time to get out of the standard line and focus the whole plant on specialty work." Mr. Thurmond was referring to a summary of unit costs and revenues that he had just received from the company’s accounting department: Standard...
"Two dollars of gross margin per briefcase? That's ridiculous!" roared Roy Thurmond, president of First-Line Cases, Inc. "Why do we go on producing those standard briefcases when we’re able to make over $9 per unit on our specialty items? Maybe it’s time to get out of the standard line and focus the whole plant on specialty work." Mr. Thurmond was referring to a summary of unit costs and revenues that he had just received from the company’s accounting department: Standard...