A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). MES Table 1 Avg Dem Per Prod. Day Inventory carrying cost Other data $5 per unit per month Production Demand Month Days 22 Forecast 900 Subcontracting cost per unit $10 per unit Average pay rate Overtime pay Rate 1 January 2 February 3 March 4 April 5 May 6 June $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit 18 700 21 800 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) 21 1,200 22 1,500 20 1,100 $600 per unit The production rate per day =Ounits. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers,) 寶TT Subcontract Month 1 January Regular Demand Production 900 (Units) 2 February 700 3 March 800 4 April 1,200 5 May 6 June 1,500 1,100 The total regular production cost = S (Enter your response as a whole number.) The total subcontracting cost = S. (Enter your response as a whole number.) Total cost with plan 5 = S (Enter your response as a whole number.) b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan.
A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). MES Table 1 Avg Dem Per Prod. Day Inventory carrying cost Other data $5 per unit per month Production Demand Month Days 22 Forecast 900 Subcontracting cost per unit $10 per unit Average pay rate Overtime pay Rate 1 January 2 February 3 March 4 April 5 May 6 June $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit 18 700 21 800 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) 21 1,200 22 1,500 20 1,100 $600 per unit The production rate per day =Ounits. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers,) 寶TT Subcontract Month 1 January Regular Demand Production 900 (Units) 2 February 700 3 March 800 4 April 1,200 5 May 6 June 1,500 1,100 The total regular production cost = S (Enter your response as a whole number.) The total subcontracting cost = S. (Enter your response as a whole number.) Total cost with plan 5 = S (Enter your response as a whole number.) b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...
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Transcribed Image Text:A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day.
a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan.
To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number).
Table 1
Avg Dem Per
Prod. Day Inventory carrying cost
Other data
$5 per unit per month
Production
Demand
Month
Days
22
Forecast
Subcontracting cost per unit $10 per unit
Average pay rate
Overtime pay Rate
$5 per hour ($40 per day)
$7 per hour (above 8 hrs per
day)
1.6 hrs per unit
$300 per unit
1 January
2 February
900
18
700
3 March
21
800
Labor-hours per unit
Cost of increasing daily
production rate (hiring &
training)
Cost of decreasing daily
production rate (layoffs)
4 April
21
1,200
5 May
22
1,500
6 June
20
1,100
S600 per unit
The production rate per day = units. (Enter your response as a whole number.)
Fill in the table below. (Enter your responses as whole numbers.)
Regular
Production
Subcontract
Month
Demand
(Units)
1 January
2 February
900
700
3 March
800
4 April
1,200
5 May
1,500
6 June
1,100
The total regular production cost = S (Enter your response as a whole number.)
The total subcontracting cost = $ (Enter your response as a whole number.)
Total cost with plan 5 = S (Enter your response as a whole number.)
b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan.
The production rate per day =| Tunits. (Enter vour response as a whole number.)
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