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A roofing supplier has developed monthly forecasts for a family of products. Data for six-month period from January to June is given below: Month

 

A roofing supplier has developed monthly forecasts for a family of products. Data for six-month period from January to June is given below: Month January February March April May June Expected Demand Production Days 900 22 600 18 1000 21 1100 21 1400 22 1000 20 You are given the following information: Subcontracting cost per unit = $40 per unit Average pay rate = $30 per hour Labour-hours to produce a unit = 2 hours Each day is an 8-hour day. What is the a. Cost of subcontracting for the six-month period? b. Labour cost for the six-month period? c. Total cost for the six-month period??

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