Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me The company you work for, Chipolopolo breweries has just bought a machine at a cost of K850,000. This machine will be operational

image text in transcribed

please help me

The company you work for, Chipolopolo breweries has just bought a machine at a cost of K850,000. This machine will be operational for two-5hift, nine hours per shift, and seven dys a week. The company calendar shows that there are 52 weeks in a year. Chipolopolo has calculated that the life span of she machine would be four years. The overhead rate for the machine has been set at 40\%. The machine will be producing products in batches. The batch quantity is planned to be 50 products. The starting material for a single product will be costing K10. The actual machining time has been calculated to be 8 minutes. Time to load and unload each product on and off the machine will be averaging 4 minutes. The cutting tool on the machine costs K5, and each tool will be changed after every 8 products. Changing of the tool will be taking 2 minutes and the set-up time for the batch will be 1.5 hours. The operator of the machine will be paid K20 per hour, and the labour overhead rate will be set at 45%. Assume availability to be 100% and scrap rate to be 0. letermine: a. The cycle time for a single product [ 2 marks] - Average production rate when setuo time is figured in [4 marks] b. Average production rate whe d. Assuming Availability of the machine is set at 80% and the scrap rate at 10%. Further, setup time should be ignored and tooling cost should not be considered. Determine the: 1. (New) Production rate and Cost Der Diece is { ma-ks) 11. Percentage increase/decrease in production rate and Cost per unit [ 3 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management

Authors: Stephen P. Robbins, Mary A. Coulter

14th Global Edition

978-0134527604

More Books

Students also viewed these General Management questions