8. Management must increase production to meet the projected demand of the OEM. KCC wishes to accomplish this without additional investments in manufacturing equipment. a. Calculate the required number of overtime hours per week and per day. Assume a 50 -week year . b. Calculate the incremental cost of producing a chassis. Assume overtime is paid at 150% of labor cost of $50 per hour and that annual deprecation will remain at 2015 levels. See Table 4 for additional relevant information.

3:55 { Case 03 kate-s-cycle-com... Table 4: Unit Cost Information 2015 Costs that vary by individual unit (example of one product) Materials: Steel tubing $200.00 Front fork 650.00 Wheel set (front and rear) 700.00 Tires 350.00 Handlebars 125.00 $2,025.00 Direct labor: (4 line workers x 40 hours per week x 50 weeks 13.33 per year x $50 per hour/ 30,000 units) Overhead (generally varies in total with production, but is relatively constant on a per-unit basis): Welding rods flux $11.00 Degreasing chemicals and supplies 7.70 Powder coating materials 25.00 Electricity for machines 10.00 Heating and cooling building 8.50 Indirect labor: Plant supervision and plant maintenance 20.00 Materials, WIP. and FG inventory handling 30.30 $112.50 Depreciation (generally fixed in total): Total per cash flow statement $16,500,000.00 $550.00 Total unit cost $2,700.83 Approximately $2,700.00 8 al Dashboard Calendar Notifications