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Bill's Custom Planters (BCP) manufactures a line of decorative wooden planter boxes that are sold to both retail and wholesale customers. BCP has the capacity
Bill's Custom Planters (BCP) manufactures a line of decorative wooden planter boxes that are sold to both retail and wholesale customers. BCP has the capacity to produce 40 planters per day using one shift. BCP has eight employees that each work up to 8 hours per day performing direct labor. There are two options of providing extra direct labor. BCP operates on a normal five-day workweek. BCP can ask the existing employees to work overtime, or hire temporary employees during the busy season. Existing employees would have to be paid time and a half to work overtime, but can be expected to maintain their normal level of efficiency when working up to 10 hours per day each. They make $13 an hour, and in overtime they make $19.50 (anything over 40 hrs a week is overtime). Temporary employees can be hired for $11.00 per hour, but their lack of experience and training is expected to mean much less production per hour. It is expected that the temporary employees will take about 2.6 hours to build each planter. A regular employee can produce the same box in 1.6 hrs. Prepare a schedule that shows the optimum labor output to produce the maximum number of planters that can be built using a combination of full time employees using regular hours, full time employees using overtime hours, and the number that will be built using temporary workers. January 21 days February 19 days March Quarter 21 days 61 days Number of work days Built using regular hours Built using overtime Built using temps Total
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