please answer within 30 minutes. Overtime or SubcontractMonthDemandRegularProductionJanFeb.MarchAprilMayJuneTotal000d. Determine the cost of the chase production plan.Total cost if workforce size adjustedTotal cost if overtime production usedTotal cost if subcontracting usedOvertime orSubcontractProductionAnswer is not complete.EndingInventory0Workers Required(4,000cases/worker)Hire0Firelayoff0 MonthJanuaryFebruaryMarchAprilMayJuneTotal DemandAverage Monthly Demand:TABLE 13-4 Soda Galore Planning DataCurrent workforce6 workersAverage monthly output per worker4,000 cases per monthInventory holding cost$0.80 per case per month$36.00 per hourRegular wage rateRegular production hours/month/worker250 hoursOvertime wage rateHiring cost$ 54.00 per hour$1,000 per worker3.20 per caseSubcontracting cost$$1,500 per workerFiring/layoff costBeginning inventory4,000 (all safety stock)Assume that employees negotiate an increase in the regular production wage rate to $40 per hour and $60 per hour for overtimeAssume Soda Galore always plans to hold at least 4.000 cases of safety stock to meet unanticipated customer demand. Also assumethat hiring and layoff/firing, if necessary, occur at the beginning of the month.a. Using the planning information and the newly negotiated wage rates, develop a six-month production plan based on levelproduction. (Leave no cells blank - be certain to enter "0" wherever required.)ActDemand Forecast16,000 cases24,000 cases32,000 cases32,000 cases24,000 cases136,000 cases264,000 cases44,000 cases

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Answered: Demand Regular Production Subcontract…

Business

Accounting

Demand Regular Production Subcontract Production Ending Inventory

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 3PB: Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should...

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Question

please answer within 30 minutes.

Overtime or Subcontract
Month
Demand
Regular
Production
Jan
Feb.
March
April
May
June
Total
0
0
0
d. Determine the cost of the chase production plan.
Total cost if workforce size adjusted
Total cost if overtime production used
Total cost if subcontracting used
Overtime or
Subcontract
Production
Answer is not complete.
Ending
Inventory
0
Workers Required
(4,000
cases/worker)
Hire
0
Fire
layoff
0

Month
January
February
March
April
May
June
Total Demand
Average Monthly Demand:
TABLE 13-4 Soda Galore Planning Data
Current workforce
6 workers
Average monthly output per worker
4,000 cases per month
Inventory holding cost
$
0.80 per case per month
$36.00 per hour
Regular wage rate
Regular production hours/month/worker
250 hours
Overtime wage rate
Hiring cost
$ 54.00 per hour
$1,000 per worker
3.20 per case
Subcontracting cost
$
$
1,500 per worker
Firing/layoff cost
Beginning inventory
4,000 (all safety stock)
Assume that employees negotiate an increase in the regular production wage rate to $40 per hour and $60 per hour for overtime
Assume Soda Galore always plans to hold at least 4.000 cases of safety stock to meet unanticipated customer demand. Also assume
that hiring and layoff/firing, if necessary, occur at the beginning of the month.
a. Using the planning information and the newly negotiated wage rates, develop a six-month production plan based on level
production. (Leave no cells blank - be certain to enter "0" wherever required.)
Act
Demand Forecast
16,000 cases
24,000 cases
32,000 cases
32,000 cases
24,000 cases
136,000 cases
264,000 cases
44,000 cases

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