production technology

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-shift, nine hours per shift, and seven days a week. The company calendar shows that there are 52 weeks in a year. Chipolopolo has calculated that the life span of the 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: 1 a. The cycle time for a single product. [2 marks] b. Average production rate when setup time is figured in [4 marks] c. Cost per piece [ 10 marks] 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. Jetermine the 1. (New) Product on rate and Cost per piece [S marks] 11. Percentage increase/decrease in production rate and cos oen unit 13 marks)