Answer for required #2 abc and #3 (case 12-34)

lpulations and explanations laccept for a kilogram of salsa? Again SE 12- nteriors (Al) manufactures seats for automobiles vans any hasace is the plant manager at the Woodstock Cover Plant but also Plant Closing Decision ILO1, Lo2 number of plants, including the Woodstock Cover Plant. Automotive Interiors s. vans, trucks, and boats. The com which makes seat covers uction manager for the dsto k s just heard that Al has received a bid from an outside vendor to supply the equ Plant but also serves as the regional e company. His budget as the regional manager is charged to the bud ice has f the entire annual output of the Woodstock Cover Plant for $42 million. Rice was aston- t the low outside bid because the budget for the plant's operating costs for the coming year $48.6 million. If this bid is accepted, the Woodstock operation will be closed down. budget for the Woodstock Cover Plants operating costs for the coming year is pre lent s set at million The sented below: Materials Labour 16,000000 Direct $13400000 800,000 3800000 18000000 Indirect plant Uverhead: preciation-equipment. Depreciation-building Pension expense Plant manager and staff Corporate expenses 4,200000 3,200,000 1200000 3400000 600000 s48600000 Total budgeted costs Expense for Rice and his regional staff Fixed corporate expenses allocated to plants and other operating units based on total budgeted wage and salary costs ue to the plant's commitment to use high-quality fabrics in all of its products, the Pu The followin rchasing Department was instructed to place blanket purchase orders with major sup- ers to ensure the receipt of sufficient materials for the coming year. If these orders were cancelled as a consequence of the plant closing, termination charges would amount t 25% of the cost of direct materials all of the direct labourers and supervisors: management and staff and the plumber would have difficulty matc the compan Approximately 350 employees would lose their jobs if the plant were closed. This includes hing the plant's base pay of $12.50 per hour which is the high- ce oys for 12 months after a plant closing. The estimated cost to administer this ser tricians, and other skilled workers classified as indirect plant workers. Some of thes Workers would have difficulty finding new jobs. Nearly all of the production workers th rea. A clause in the plant's contract with the union may help some employees: ny must provide employment assistance and job training to its former ce would be $1.6 million