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Ferguson Fabricators, Inc., a sup- plier of bulk metals and alloys, recently negotiated to supply 3,000 sections of aluminum air conditioning ductwork for an

 

Ferguson Fabricators, Inc., a sup- plier of bulk metals and alloys, recently negotiated to supply 3,000 sections of aluminum air conditioning ductwork for an office building under construction. The order requires fabricating, cutting, and assembly. Based on experience, the foreman prepared the following daily budget: Department Fabricating.... Cutting.. Assembly.. Department Fabricating.... Cutting. Assembly.. The second day's report showed: Sections Scheduled ..... 100 100 100 Realizing the need for up-to-the-minute production information, the fore- man obtained these results of the first day's activity: Sections Produced 112 81 77 Hours Budgeted Sections Produced 50 30 25 Hours Required 48 30 22 Hours Required Department Fabricating... 120 96 Cutting..... Assembly.. 96 Required: (1) Action to be taken by the foreman, based on the first day's report. (2) Action needed according to the results on the second day's report. 49 30 23

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