Valve Company (VC) manufactures valves for commercial use. VC operates two (8-hour) shifts, 5 days each week. Demand for these valves is strong, exceeding VC's current production. The plant is closed for 27 days each year for holidays and vacation time. VC's assembly equipment is capable of producing 25 units per hour however VC produces 20 units per hour. Approximately 5 units per working shift are defective. All defective units are reworked at the same rate of production as non-defective units. Because of the complex composition of the valves the equipment is shut down for one day every month for regular maintenance. Even with this regular maintenance, equipment breakdowns happen about 15 times each year and cause production to completely stop for 2production days with each breakdown.

Total non-productive capacity at VC is:

A. 450.5 hours

B. 103.5 hours

C. 672.0 hours

D. 768.0 hours (correct answer)

Maintenance = (2 shifts x 8 hr) x 12 months = 192 hrs

2 days x 15 times = 30 days x 2 shifts x 8 hrs = 480 hrs

Waste = (5/20) = .25 x (365 - 27 - 104 - 12 - 30) = 48 hrs

Rework = (5/20) = .25 x (365 - 27 - 104 - 12 - 30) = 48 hrs (same rate as production)

192 + 480 + 48 + 48 = 768 Hours

Update - The answer is 768 Hours and a Chegg expert still needs more details... What in the world....