Executive Shirt Company

1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?

Assume that in the following table the cost of labor is $7 per hour, the cost to rent a machine is $10 per hour.

B. 1. The impact of costs on the decision to move forward with the new Maui Sandal line is as follows: As the production continues, the hours needed for each batch, or individual pair, will begin to decrease. By continuing to produce this line the total labor costs will continue to decrease, but most likely, at a slower rate as more sandals are produced. This data can help the company decide employment levels, capacity, costs, and their pricing of this particular merchandise in the open market. The company predicts that it will take 1,000 labor hours for production to complete for the first batch, with 50 total batches between month 1 and month 4.

Total number of shirts produced per month is 16,000. The company works for 20 days a month.

To determine the cost of labor to re-work under filled cases, I divided the hourly rate of the employee ($8.50/hr)

A. Assuming the number of hours Anna Sheen will spend developing the profile section will = 4; Ralph Armentrout’s optimal stocking quantity is 516, as portrayed in the table below:

The following includes, the Drilling Capacity, which has a run time of 2.5 minutes per piece. Therefore, this produces a total of 384 units per machine, giving us a total of 960 minutes. In addition, providing that there are a total of 6 machines, thus giving us a total of 2,304 units. Moving forward, giving that we know that Drilling has a 75-reject rate, and thus providing us with a total of 162 units. Nevertheless, if we subtract the total amount of units produced from all 6 machines of 2,304 units with the 162 units, this will provide us with a new total of 2,142 units.

5. How would you go about deciding the appropriate batch size for the Stonehaven factory? What factors would you consider? How do they interrelate? (You may wish to do some calculations, but concentrate on thinking conceptually.)

(If the company produce the BB first, the company will buy 4000 labor hours, and it will use 2500 for BB and the remaining hours to produce WRM = 1500.

production and sales of Product A is 2,000 units and of Product B is 3,000 units. There are three activity cost

Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week.

Problem #2.” (To make your life easier, optimal stocking quantity, Q, is computed by the

George Lassiter makes t-shirts for special events such as concerts. The upcoming concert presents another opportunity for George to make and sell t-shirts; however the question is how many t-shirts to produce. There are two fundamental case questions that must be answered:

 The production capacity would be affected as there would be less amount of raw materials

The finished-goods inventory consisted of job no. 3154, which cost $175,750 [$78,000 + $42,500 + ($42,500 x 130%)].