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Excel Online Activity: Location Analysis The following data are related to the operating costs of three possible locations for Fountains Manufacturing: Location 1 Location 2
Excel Online Activity: Location Analysis The following data are related to the operating costs of three possible locations for Fountains Manufacturing: Location 1 Location 2 Location 3 Fixed costs $160,000 $145,000 $175,000 Direct material cost per unit $8.10 $7.90 $8.00 Direct labor cost per unit $3.80 $4.00 $3.30 Overhead per unit $1.00 $0.90 $1.30 Transportation cost per unit $1.10 $1.40 $1.25 Which location would minimize the total costs, given annual production of 40,000 units? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Questions 1. What are the total annual costs for each of the locations? Round your answers to the nearest dollar Location 1 Location 2 Location 3 Total 2. Which location would minimize the total costs? Location 1 Location 2 Location 3 00 own 3 4 5 6 7 8 A Data Location 1 Location 2 Location 3 Fixed Costs $160,000.00 $145,000.00 $175,000.00 Direct material cost/unit $8.10 $7.90 $8.00 Direct labor cost/unit $3.80 $4.00 $3.30 Overhead/unit $1.00 $0.90 $1.30 Transportation cost/unit $1.10 $1.40 $1.25 Location 3 10 Annual Production 40000 11 12 Total Costs Location 1 Location 2 13 Fixed Costs 14 Direct material cost 15 Direct labor cost 16 Overhead 17 Transportation cost 18 Total 19 20 Least-cost location 21 22 Formulas Location 1 Location 2 23 Fixed Costs #N/A #N/A 24 Direct material cost #N/A #N/A 25 Direct labor cost #N/A #N/A 26 Overhead #N/A #N/A 27 Transportation cost! #N/A #N/A 28 Total #N/A #N/A 29 30 Least-cost location #N/A 31 Location 3 #N/A #N/A #N/A #N/A #N/A #N/A
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