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IE1418 Chapter 4 Practice Problem-1 Given the following information, determine the productive hour cost for each of the machine centers shown. Assume that the direct

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IE1418 Chapter 4 Practice Problem-1 Given the following information, determine the productive hour cost for each of the machine centers shown. Assume that the direct labor budget includes the fringe cost for direct labor. Show calculations of how you arrive at the answer. Machine center Fabrication Assembly Testing Area (SF) 25000 6000 1900 Direct labor Hours 1600 640 320 Hp Hrs 2200 325 650 Depreciation 27000 7200 1800 Testing 1000 500 4000 Direct labor Budget 20165 12296 8744 OH Summary Plant space Indirect Supplies Utilities Indirect Labor Engineering Administration Amount ($) 7000 16000 4200 4000 13000 3000 Allocation Basis Area Direct Labor Hours HP-Hours Direct Labor Hours Direct Labor Hours Direct Labor Hours Utilization = 100

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