Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PP.52A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Supply/Demand Info Beginning

PP.52A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below:

Supply/Demand Info Beginning Jan Feb Mar Apr May Jun
Forecast (demand) 60,200 60,600 51,600 54,200 46,800 58,800
Regular production
Overtime production
Subcontract production
Ending inventory 6,600
Hired employees
Fired employees
Total employees 220

Cost variables are as follows:

Cost Variables
Labor cost/hour $17
Overtime cost/unit $39
Subcontracting cost/unit $35
Holding cost/unit/month $14
Hiring cost/employee $3,300
Firing cost/employee $4,600

Here is someadditional relevant (capacity) information:

Capacity Information
Total labor hours/SSD 2
Regular production units/employee/month 200
Max regular production/month 55,200
Max overtime production/month 5,000
Max subcontractor production/month 5,200

Assuming the company ONLY uses overtime and/or subcontract production if regular production capacity is not sufficient, answer the following questions: What is the regular production cost(over the six months from January through June) for a CHASE production plan? (Displayyour answer to the nearest whole number.)

What is the total overtime productioncost for this production plan? (Displayyour answer to the nearest whole number.) What is the total subcontractcost for this production plan? (Displayyour answer to the nearest whole number.) What is the total holdingcost for this production plan? (Displayyour answer to the nearest whole number.) What is the total hirecost for this production plan? (Displayyour answer to the nearest whole number.) What is the total firecost for this production plan? (Displayyour answer to the nearest whole number.) What is the total cost(sum of all costs) for this production plan? (Displayyour answer to the nearest whole number.)

Need solved via excel with formulas please. Thank you.

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

Accounting A Level And AS Level

Authors: Harold Randall

1st Edition

0521539935, 978-0521539937

Students also viewed these General Management questions

Question

Discuss the origins of behavior therapy.

Answered: 1 week ago

Question

How does the concept of hegemony relate to culture?

Answered: 1 week ago