Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is the total cost for each of the following aggregate production plans using these unit costs regular output =$40.00 overtime=$50.00 subcontract =$60.00 inventory per

what is the total cost for each of the following aggregate production plans using these unit costs

regular output =$40.00

overtime=$50.00

subcontract =$60.00

inventory per month =$10

A)month jan feb march april may june

forecast 300 320 320 340 320 320

output

regular 300 300 300 300 300 300

overtime 20 20 20 20 20 20

subcontract 0 0 0 0 0 0

output-Forcast

Inventory

Beginning

Ending

Average

B) Month July August Sept Oct Nov Dec

Forecast 320 340 360 380 400 400

Ouput

Regular 300 300 300 300 300 300

Overtime 20 20 20 20 30 30

Subcontract 20 30 40 40 60 70

Ouput-Forecast

Inventory

Beginning

Ending

Average

C) Refer to Part B) after complaints from some workers about working overtime every month during the first half of the year, the manager is now considering adding some temporary workers for the second half of the year, which would increase regular ouput to a steady 350 units a month, not using any overtime, and using subcontracting to make up the shortage. Determine the total cost of this plan?

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

Operations Management

Authors: William J Stevenson

12th edition

2900078024107, 78024102, 978-0078024108

More Books

Students also viewed these General Management questions

Question

In 100-150 words, describe the 3 Pillars of Managerial Accounting.

Answered: 1 week ago