The table below shows information on the material cost, demand and production hours for parts in a cylinder head machining plant. Five parts are to be considered for an automated FMS for the plant. The parts were initially sourced from a vendor at a purchase prices given in the table below. Because of the proposed 2 shifts, the shop will be available 440 hours /month and charged at R1000 / hour. Part type Description 2 3 4 1. Purchase price (R) / unit 6000 2500 8000 2000 3000 2. Material cost (R) 600 500 100 800 900 3. Demand / month 80 70 60 50 30 4. Hours / unit 2 4 5. Savings / unit 6. Hours / month, p 7. Savings /hour 8. Savings /month, si 9. s; / Pi Compute the missing values for savings/unit, Hours / month, Savings/hour, Savings/ month and answer the following: 1. Savings / unit for part type 1 2. Savings / unit for part type 2 3. Savings / unit for part type 3 4. Savings / unit for part type 4 5. Savings / unit for part type 5 6. s1 / p1 7. s2 / P2 3.

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter5: Process Costing
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The table below shows information on the material cost, demand and production hours
for parts in a cylinder head machining plant. Five parts are to be considered for an
automated FMS for the plant. The parts were initially sourced from a vendor at a
purchase prices given in the table below. Because of the proposed 2 shifts, the shop
will be available 440 hours / month and charged at R1000 / hour.
Part type
Description
1
4
5
1. Purchase price (R) / unit
6000
2500
8000
2000
3000
2. Material cost (R)
600
500
100
800
900
3. Demand / month
80
70
60
50
30
4. Hours / unit
3
4.
5. Savings / unit
6. Hours / month, p
7. Savings / hour
8. Savings / month, s
9. si / pi
Compute the missing values for savings/unit, Hours / month, Savings /hour, Savings /
month and answer the following:
1. Savings / unit for part type 1
2. Savings / unit for part type 2
3. Savings / unit for part type 3
4. Savings / unit for part type 4
5. Savings / unit for part type 5
6. s1 / p1
7. s2 / p2
2.
Transcribed Image Text:The table below shows information on the material cost, demand and production hours for parts in a cylinder head machining plant. Five parts are to be considered for an automated FMS for the plant. The parts were initially sourced from a vendor at a purchase prices given in the table below. Because of the proposed 2 shifts, the shop will be available 440 hours / month and charged at R1000 / hour. Part type Description 1 4 5 1. Purchase price (R) / unit 6000 2500 8000 2000 3000 2. Material cost (R) 600 500 100 800 900 3. Demand / month 80 70 60 50 30 4. Hours / unit 3 4. 5. Savings / unit 6. Hours / month, p 7. Savings / hour 8. Savings / month, s 9. si / pi Compute the missing values for savings/unit, Hours / month, Savings /hour, Savings / month and answer the following: 1. Savings / unit for part type 1 2. Savings / unit for part type 2 3. Savings / unit for part type 3 4. Savings / unit for part type 4 5. Savings / unit for part type 5 6. s1 / p1 7. s2 / p2 2.
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