1. Answer the following questions, and show your calculations/explications

a) Your company intends to purchase a 25 MN press. A similar machine was purchased eight years ago for $89,500. The price index for heavy duty presses was 163.6 eight years ago and is 198.1 now.

Estimate the current cost of the 25 MN press.

b) Elaine, Bob, Kenza and Nikhil are working together on a project. These are the data for each:

Kenza: 80 hours, overhead rate 75%, personal time 11%, $36/hr.

Elaine: 60 hours, overhead rate 75%, personal time 10%, $22/hr.

Bob: 80 hours, overhead rate 55%, personal time 12%, $40/hr.

Nikhil: 40 hours, overhead rate 55%, personal time 12%, $20/hr.

Who has the highest direct labor costs?

c) Elaine, Bob, Kenza and Nikhil are working together on a project. These are the data for each:

Kenza: 80 hours, overhead rate 75%, personal time 11%, $36/hr.

Elaine: 60 hours, overhead rate 75%, personal time 10%, $22/hr.

Bob: 80 hours, overhead rate 55%, personal time 12%, $40/hr.

Nikhil: 40 hours, overhead rate 55%, personal time 12%, $20/hr.

Calculate the total direct labor costs.

d) A worker begins to assemble a newly designed packaging machine. The labor hours required for assembling the second and third units are 28.6 and 27.9 hours respectively.

Calculate the labor hours required to assemble the first unit.