Question
spotlight's production budget is below. it is based on its budgeted sales and its inventory strategy, which is to plan to have 10% of next
spotlight's production budget is below. it is based on its budgeted sales and its inventory strategy, which is to plan to have 10% of next month's sales in inventory at the end of each month
production budget
sept oct nov dec jan
budgeted sales (units): 15000, 15600, 16800, 17400, 14400
+desired ending inv: 1560, 1680, 1740, 1440
planned need: 1650, 1720, 18540, 18840
-beg inv: 1500, 1560, 1680, 1740
budgeted production units: 15060, 15720, 16860, 17100
the direct labor required to manufacture te GPx is as follows:
the manufacturing of the GPx is performed in 2 direct labor workers who complete the manufacturing process as a team
each worker takes 5 mins to complete each GPx
cell workers average 50 mins of productivity each hour
spotlight employs all of its workers ful time for the month
as such, direct labor workers work 160 hours per month with no overtime
for the month of october:
A. what is the number of direct labor hours needed to manufacture one GPx?
B. what is the total amount of productive labor hours needed for the month?
C. what is the total amount of non-productive/idle time that will be incurred for the month?
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