Solve the following LP Shelby Shelving is a small company that manufactures two types of shelves for grocery stores. Model S is the standard model and model LX is a heavy-duty version. Shelves are manufactured in three major steps: stamping, forming, and assembly. In the stamping stage, a large machine is used to stamp standard sheets of metal into appropriate sizes. In the forming stage, another machine bends the metal into shape. Assembly involves joining the parts with a combination of soldering and riveting. Since different amount of solder and rivets are used for assembly, they have different workstations.   Model S shelves are sold for $350 and model LX shelves are sold for $405. Shelby’s operation is fairly small in the industry, and management believes it cannot raise prices beyond these levels because of the competition. However, the marketing department believes that Shelby can sell as much as it can produce at these prices. Within a given month, Shelby has 1,200 hours of stamping, 1,200 hours of forming and 1,000 hours of assembly available.  Each model S shelf requires 0.3 hours for stamping, 0.25 hours for forming, and 0.5 hours for assembly. Each model S shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model S is $175 per unit.   Each model LX self requires 0.3 hours for stamping, 0.25 hours for forming, and 0.6 hours for assembly. Each model LX shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model LX is $210 per unit.  They want 60% of the production dedicated to model LX shelves

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter4: Job-order Costing And Overhead Application
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Shelby Shelving is a small company that manufactures two types of shelves for grocery stores. Model S is the standard model and model LX is a heavy-duty version. Shelves are manufactured in three major steps: stamping, forming, and assembly. In the stamping stage, a large machine is used to stamp standard sheets of metal into appropriate sizes. In the forming stage, another machine bends the metal into shape. Assembly involves joining the parts with a combination of soldering and riveting. Since different amount of solder and rivets are used for assembly, they have different workstations.  

Model S shelves are sold for $350 and model LX shelves are sold for $405. Shelby’s operation is fairly small in the industry, and management believes it cannot raise prices beyond these levels because of the competition. However, the marketing department believes that Shelby can sell as much as it can produce at these prices. Within a given month, Shelby has 1,200 hours of stamping, 1,200 hours of forming and 1,000 hours of assembly available. 

Each model S shelf requires 0.3 hours for stamping, 0.25 hours for forming, and 0.5 hours for assembly. Each model S shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model S is $175 per unit.  

Each model LX self requires 0.3 hours for stamping, 0.25 hours for forming, and 0.6 hours for assembly. Each model LX shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model LX is $210 per unit. 

They want 60% of the production dedicated to model LX shelves.  

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What are the controllable inputs from this example? What are the uncontrollable inputs from this example?

Shelby Shelving is a small company that manufactures two types of shelves for grocery stores. Model S is the standard model and model LX is a heavy-duty version. Shelves are manufactured in three major steps: stamping, forming, and assembly. In the stamping stage, a large machine is used to stamp standard sheets of metal into appropriate sizes. In the forming stage, another machine bends the metal into shape. Assembly involves joining the parts with a combination of soldering and riveting. Since different amount of solder and rivets are used for assembly, they have different workstations.  

Model S shelves are sold for $350 and model LX shelves are sold for $405. Shelby’s operation is fairly small in the industry, and management believes it cannot raise prices beyond these levels because of the competition. However, the marketing department believes that Shelby can sell as much as it can produce at these prices. Within a given month, Shelby has 1,200 hours of stamping, 1,200 hours of forming and 1,000 hours of assembly available. 

Each model S shelf requires 0.3 hours for stamping, 0.25 hours for forming, and 0.5 hours for assembly. Each model S shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model S is $175 per unit.  

Each model LX self requires 0.3 hours for stamping, 0.25 hours for forming, and 0.6 hours for assembly. Each model LX shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model LX is $210 per unit. 

They want 60% of the production dedicated to model LX shelves.  

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What are the uncontrollable inputs?  What are the controllable inputs?

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