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- 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).What do you think should be the procedure of the extension worker in solvingt theproblems? What are the concerns covered by extension? If you were an extension worker, what will you use as your entry point? Why?The break-even point is:a) adding processes to meet the point of changing productdemands.b) improving processes to increase throughput.c) the point in dollars or units at which cost equals revenue.d) adding or removing capacity to meet demand.e) the total cost of a process alternative.
- The Company makes TSHIRTS at their facility in chicago and Minnesota. The process involves three departments: Cutting, Stuffing, and Sewing. Eddie Edwards is the Manufacturing Manager for acme She has developed a monthly production plan for the next half year: Month 1 2 3 4 5 6 Planned Production (units) 65,000 72,000 74,000 71,000 80,000 82,000 Jamie has also collected some data about each of the production departments: Department Time required per pillow (hours) Total Production Hours Available (monthly) Cutting .25 24,000 Stuffing .45 34,000 Sewing .85 60,000 Jamie needs to assess the capacity implications that the monthly production plan holds for her facilities. Please answer the following questions concerning her situation. a) Calculate the projected monthly capacity utilization (as a percentage of production hours available) for each of the three departments. b) Which department is of greatest concern for Eddie? Why?. c) Please suggest two ways that Eddie might be able to…A linear programming computer package is needed. EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown, the management team does not think a smooth production schedule with the same production quantity each month possible. February March April Sales forecast 15,000 16,500 20,000 Production capacity 14,000 14,000 18,000 Storage capacity 6,000 6,000 6,000 The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00…A linear programming computer package is needed. EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown, the management team does not think a smooth production schedule with the same production quantity each month possible. February March April Sales forecast 15,000 16,500 20,000 Production capacity 14,000 14,000 18,000 Storage capacity 6,000 6,000 6,000 The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00…
- A linear programming computer package is needed. EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown, the management team does not think a smooth production schedule with the same production quantity each month possible. February March April Sales forecast 15,000 16,500 20,000 Production capacity 14,000 14,000 18,000 Storage capacity 6,000 6,000 6,000 The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00…The following processes - Tameka, Tamia, and Christian - have the following cost structure: Show all work in Excel with formulas Process Fixed Cost per Year Variable Cost per Unit Tameka $120,000 $3.00 Tamia 90,000 4.00 Christian 80,000 4.50 a. What is the most economical process for a volume of 8,000 units? b. How many units per year must be sold with each process to have annual profits of $50,000 if the selling price is $6.95 per unit? c. What is the break-even volume for each process?2. Jamila wants to set up a manufacturing unit, so she meets with Rashid, a humanresource manager at her company. Rashid explains that in order to decide on thehuman resource needs for the unit, they should conduct a workflow analysis. Shesuggests they start by defining the outputs of the process. To do this, what shouldJamila define?A) the processes that will be involved in manufacturingB) the number of people required for productionC) the type of products that will need to be manufacturedD) the special equipment, facilities, and systems needed for productionE) the data and information needed by the work unit
- Consider Iqra University as an example of service industry. Implement ITO (Input---Transformation---Output) Model on this university in detail and highlight its Transforming andTransformed input(s). You are encouraged to draw a block diagram.A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 Click here for the Excel Data File a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole…2-The process of making hotdogs involves six activities: “grind”, “mix”, “stuff”, “cook”, “peel”, and “inspect”. If the capacity of activity “cook” determines the process capacity, which of the following statements are true? a- Activity “cook” is a bottleneck activity. b- The activity time of all the other five activities is shorter than activity "cook". c- Cycle time of the process of making hotdogs is equal=1/capacity of activity “cook”. d- Increasing the capacity of activity “grind” can increase the capacity of the process of making hotdogs. All statements are correct Only statement 'b' is correct Only statements 'a' and 'b' are correct Only statements 'a', 'b' and 'c' are correct Only statement 'a' is correct Only statement 'd' is correct