Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The management team for Buddy's Bats is considering two locations for a plant to manufacture wooden baseball bats. The fixed setup costs for both plants

image text in transcribed

The management team for Buddy's Bats is considering two locations for a plant to manufacture wooden baseball bats. The fixed setup costs for both plants are identical. Plant A can produce 500 bats per week. The plant works one 8 hour shift per day with 6 staff. The plant works 5 days per week. The average wage is $20 per hour. The plant would use 600 units of maple and can buy maple at $5 per unit. Based on location and staffing levels, the plant would be assigned an overhead allocation of $1000 per week. Plant B can produce 500 bats per week. The plant works one 8 hour shift per day with 7 staff. The plant works 5 days per week. The average wage is $20 per hour. The plant would use 625 units of maple to make the bats and can buy maple at $4 per unit. Based on location and staffing levels, the plant would be assigned an overhead allocation of $1,500 per week. You want to compare the labour productivity between the two locations as part of the decision making process. What is the appropriate labour productivity for comparison for Plant A? Use 3 decimal places. Your Answer: Your Answer Question 4 (3 points) The management team for Buddy's Bats is considering two locations for a plant to manufacture wooden baseball bats. The fixed setup costs for both plants are identical. Plant A can produce 500 bats per week. The plant works one 8 hour shift per day with 8 staff. The plant works 5 days per week. The average wage is $21 per hour. The plant would use 600 units of maple and can buy maple at $5 per unit. Based on location and staffing levels, the plant would be assigned an overhead allocation of $1000 per week. Plant B can produce 500 bats per week. The plant works one 8 hour shift per day with 7 staff. The plant works 5 days per week. The average wage is $20 per hour. The plant would use 625 units of maple to make the bats and can buy maple at $4 per unit. Based on location and staffing levels, the plant would be assigned an overhead allocation of $1,500 per week. You want to compare the material productivity between the two locations as part of the decision making process. What is the appropriate material productivity for comparison for Plant A? Use 3 decimal places

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

Financial Management Theory And Practice

Authors: Prasanna Chandra

7th Edition

0070656657, 978-0070656659

More Books

Students also viewed these Finance questions