Question
The Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold unassembled through catalogs. The company initiates production of 150 cabinet packages each
The Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold unassembled through catalogs. The company initiates production of 150 cabinet packages each week. The percentage of good-quality cabinets averages 83% per week, and the percentage of poor-quality cabinets that can be reworked is 60%.
A. What is the manufacturing cost per good product if the direct manufacturing cost of 150 cabinets is $27 and the rework cost is $8. The percentage of good quality cabinets averages 83%..?
B. Determine the manufacturing cost per product if the percentage of good quality file cabinets is increased to 90%
C. What is the product yield of good quality cabinets for the week?
D. What would original product input have to be in order to achieve a final weekly yield of 300 cabinets?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started