27. The Bryant Company manufactures a custom-designed part for the aerospace industry. Within the production facility, there are fi ve operating departments.

The sequence of departments through which the part passes during production is shown in the table below. The table also contains other production information. Two units of product can be obtained from one 49 3 49 sheet of aluminum that costs $3.50 per square foot. Overhead costs to produce a lot of size 10,000 are estimated to be $304,000.

a. Assume that no other production costs exist. Determine the total cost of producing a 10,000-unit lot.

b. Determine the cost per piece of producing a 10,000-unit lot.

c. Assume that overhead is distributed on the basis of fl oor space. What is the overhead assigned to each department?

Transcribed Image Text:

Sequence Dept Avg. Labor ($/hr) Avg. Prod. Time (min/part) Floor Space (sq. ft.) 12345 Cutting $20.00 3.0 1,300 Stamping $18.20 1.0 1,600 Trimming $17.20 2.0 1,200 Assemble $16.00 5.0 2,000 Package $14.40 0.5 1,500