Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per casting.a. What is the break-even quantity beyond which the first process is more attractive?b. What is the difference in total cost if the quantity produced is 10,000?
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Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per casting.
a. What is the break-even quantity beyond which the first process is more attractive?
b. What is the difference in total cost if the quantity produced is 10,000?
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- Yost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to working on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Which of the four workstations, W, X, Y, or Z has the highest aggregate workload, and thus…Yost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to working on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Workstation W, with a total load time of ____ minutes. (Enter your response as an integer.)Yost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week.…
- Yost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown in Figure. Raw materials and purchased parts (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Which of the four workstations, W, X, Y, or Z, has the highest aggregate workload, and thus…A new highway is to be constructed. Design A calls for a concrete pavement costing $80 per foot with a 20-year life; four paved ditches costing $3 per foot each; and two box culverts every mile, each costing $9,000 and having a 20-year life. Annual maintenance will cost $1,800 per mile; the culverts must be cleaned every five years at a cost of $350 each per mile. Design B calls for a bituminous pavement costing $55 per foot with a 10-year life; three sodded ditches costing $1.45 per foot each; and four pipe culverts every mile, each costing $2,100 and having a 10-year life. The replacement culverts will cost $2,350 each. Annual maintenance will cost $2,900 per mile; the culverts must be cleaned yearly at a cost of $215 each per mile; and the annual ditch maintenance will cost $1.35 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 20-year period. Find the most economical design on the basis of AW and PW if the MARR is 6% per…Georgetown Pizza makes favorite pan pizzas every day with three working shifts around the clock. The current completely cooked pizza making process has a fixed cost of $24,000, and a variable cost of $2.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked and selling at $13.98 per unit, or partially cooked with a selling price of $12.98 per unit. This alternate process has a fixed cost of $28,000, but a lower variable cost (because much less energy is used in baking) of $2.25 per pizzac. If the owner expects to get $390,000 as a half year profit, how many units of completely cook pizzas, should Georgetown sell a year using the current pizza making process? d. Determine the annual design capacity for Georgetown’s production if the completely cook pizzas can be produced at 120 units per hour.
- The one in bold, I already sold. Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $340,000 of fixed cost and add $40 of variable cost to each casting Spartan produces. The second process has fixed costs of $100,000 and adds $70 of variable cost per casting. a. What is the break-even quantity beyond which the first process is more attractive? The break-even quantity is 8000 castings. b. What is the difference in total cost if the quantity produced is 5,000? The total cost of process 1 is greater. Find the difference in total cost?Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its “products.” The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow: Activity Budgeted Activity Cost Activity Base Scheduling and admitting $432,000 Number of patients Housekeeping 4,212,000 Number of patient days Nursing 5,376,000 Weighted care unit Total costs $10,020,000 Total “patient days” are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a…Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its “products.” The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow: Activity Budgeted Activity Cost Activity Base Scheduling and admitting $432,000 Number of patients Housekeeping 4,212,000 Number of patient days Nursing 5,376,000 Weighted care unit Total costs $10,020,000 Total “patient days” are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a a little more than a…
- XYZ Company produces and sells 2 products, Lambda and Gamma, and the production process goes through two departments. Traditionally Manufacturing Overhead (M/O) cost is applied on the basis of direct labor hours (DLH); estimated M/O cost is $ 5,757,500 and the estimated DLH is $12,250 for the most recent period.The team decided to replace traditional plantwide costing system to activity-based costing system. There are 3 activity cost pools which represent 3 activity areas at the plant. Direct Labor wage rate is $ 30 per hour. Compute total cost per unit (for lambda and gamma) using activity-based approach. (round your numbers).Georgetown Pizza makes its favorite pan pizzas every day with three working shifts around the clock. The current completely cooked pizza-making process has a fixed cost of $24,000, and a variable cost of $2.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked and selling at $13.98 per unit, or partially cooked with a selling price of $12.98 per unit. This alternate process has a fixed cost of $28,000, but a lower variable cost (because much less energy is used in baking) of $2.25 per pizza. a. Determine the breakeven quantity between the current pizza-making process and the alternate process.A.J.’s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, Z) using a small batch process. Each of the products is produced according to the flowchart in Figure. Additionally, the flowchart indicates each product’s price, weekly demand, and processing times per unit. Batch setup times are negligible.A.J. can make and sell up to the limit of its weekly demand and there are no penalties for not being able to meet all of the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $16 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $2,000 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions. a. Using the traditional method, which bases decisions solely on a product’s contribution to profits and overhead, what is the…