The Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold unassembled through catalogs. The company initiates production of 488 cabinet packages each week. The percentage of good-quality cabinets averages 84% per week, and the percentage of poor-quality cabinets that can be reworked is 64%. If the direct manufacturing cost per cabinet is $78 and the rework cost is $38, what is the manufacturing cost per good product? (Round your answer to 2 decimal places, e.g. 35.50) Manufacturing cost per good product = $ per cabinet

Contemporary Marketing
18th Edition
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Louis E. Boone, David L. Kurtz
Chapter15: Distribution Channels And Supply Chain Management
Section15.4: Components Of The Supply Chain
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The Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold unassembled through
catalogs. The company initiates production of 488 cabinet packages each week. The percentage of good-quality cabinets
averages 84% per week, and the percentage of poor-quality cabinets that can be reworked is 64%. If the direct manufacturing
cost per cabinet is $78 and the rework cost is $38, what is the manufacturing cost per good product? (Round your answer to 2
decimal places, e.g. 35.50)
Manufacturing cost per good product = $
per cabinet
Transcribed Image Text:The Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold unassembled through catalogs. The company initiates production of 488 cabinet packages each week. The percentage of good-quality cabinets averages 84% per week, and the percentage of poor-quality cabinets that can be reworked is 64%. If the direct manufacturing cost per cabinet is $78 and the rework cost is $38, what is the manufacturing cost per good product? (Round your answer to 2 decimal places, e.g. 35.50) Manufacturing cost per good product = $ per cabinet
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