Question
A small manufacturer of specialty welding equipment has developed a level production plan for the next four quarters, as follows: Bid/ask for information Pre-Q1 Q1
A small manufacturer of specialty welding equipment has developed a level production plan for the next four quarters, as follows:
Bid/ask for information | Pre-Q1 | Q1 | Q2 | Q3 | Q4 |
forecast demand) | 4,600 | 4,600 | 3,680 | 6,440 | |
regular production | 4,830 | 4,830 | 4,830 | 4,830 | |
outsourced production | |||||
running out of inventory | |||||
contract employees | 12 | ||||
laid off employees | |||||
Total Employees | 30 | 42 | 42 | 42 | 42 |
Additional Information:
Capacity information and cost variables | |
Production rate (units/employee/quarter) | 115 |
Subcontractor capacity (units/quarter) | 480 |
Regular production cost/unit | $70 |
Maintenance cost/unit/quarter | $14 |
Hiring cost/employee | $980 |
Layoff cost/employee | $2,600 |
Subcontracting cost/unit | $105 |
What is the total overhead cost for this production plan? (Show your answer to the nearest whole number .)
What is the total regular production cost for this production plan? (Show your answer to the nearest whole number .)
What is the total holding cost for this production plan? (Show your answer to the nearest whole number .)
What is the total rental cost for this production plan? (Show your answer to the nearest whole number .)
What is the total cost of fires for this production plan? (Show your answer to the nearest whole number .)
Step by Step Solution
3.45 Rating (165 Votes )
There are 3 Steps involved in it
Step: 1
Here are the steps to calculate the total overhead cost regular production cost holding cost rental ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started