Zebra Technologies Corporation (ZTC) manufactures a number of navigation packages for pleasure boats. Their plant in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Zebra Technologies Corporation (ZTC) manufactures a number of navigation packages for pleasure boats. Their plant in Alabama wants to try a fixed production schedule for the next 6 months. When regular-time production and inventory cannot meet demand, they plan on first using overtime, and if that is insufficient, they will subcontract out in order to meet demand. The forecast for the next 6 months and key production data are provided below. Demand Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Hiring Cost Jan 700 Feb 600 Mar 400 65 units/month/employee Employees $100/units $175/unit $150/unit 100 units $150/employee What would be the total cost of this plan? Apr 650 May 850 Subcontracting Cost Subcontracting Limit Average Inventory Cost Initial Inventory Firing Cost Jun 1,000 10 $200/unit 200 units maximum $20/unit/month 100 units $200/employee If management at ZTC is interested in a chase strategy using a hire/fire option, what is the total cost of this plan? They plan on using a policy where if the need were for 21.2 workers, they would hire 22 workers for that quarter. (Hint: this will impact regular time production and inventory.) Zebra Technologies Corporation (ZTC) manufactures a number of navigation packages for pleasure boats. Their plant in Alabama wants to try a fixed production schedule for the next 6 months. When regular-time production and inventory cannot meet demand, they plan on first using overtime, and if that is insufficient, they will subcontract out in order to meet demand. The forecast for the next 6 months and key production data are provided below. Demand Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Hiring Cost Jan 700 Feb 600 Mar 400 65 units/month/employee Employees $100/units $175/unit $150/unit 100 units $150/employee What would be the total cost of this plan? Apr 650 May 850 Subcontracting Cost Subcontracting Limit Average Inventory Cost Initial Inventory Firing Cost Jun 1,000 10 $200/unit 200 units maximum $20/unit/month 100 units $200/employee If management at ZTC is interested in a chase strategy using a hire/fire option, what is the total cost of this plan? They plan on using a policy where if the need were for 21.2 workers, they would hire 22 workers for that quarter. (Hint: this will impact regular time production and inventory.)
Expert Answer:
Answer rating: 100% (QA)
Given the demand for the next 6 months Well use the costs provided to arrive at both cases To overcome the inventory shortage we will first use overti... View the full answer
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
Posted Date:
Students also viewed these general management questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Question 1 This question has two parts, (A) and (B). Answer both parts. 100% Liverpool plc is a company that manufactures a number of different types of electrical goods and has a year end of 31...
-
2) Which one of the following is a defining characteristic of animals but NOT of plants? A) Animals, but not plants, are autotrophs B) Animals, but not plants, are heterotrophs C) Animals, but not...
-
You're pretty sure that your candidate for class president has about 55% of the votes in the entire school. But you're worried that only 100 students will show up to vote. How often will the underdog...
-
Future Adhesives Inc. uses the variable-cost approach to determine target selling prices. A special adhesive used in the aerospace industry has the following per unit data: desired ROI $20;...
-
Four people enter an empty smoking lounge that has a volume of 50 m 3 and is ventilated at a rate of 120 m 3 /hr. Each person smokes about two cigarettes an hour, and each cigarette produces about 40...
-
Who says a forensic audit is akin to a police investigation?
-
At week 24 of a project to shoot a television commercial, the project manager is worried about her budget since costs have risen to $7,500. Is there a cost overage? If so, how much is it? Is the...
-
Prepare the income tax expense section of the income statement for 2025, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the...
-
As of December 31, Cookie Creations' year-end, the following adjusting entry data are provided. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. A count reveals that $45 of brochures and posters (supplies) were used....
-
Explain all the steps and calculation in detail. 1. Draw the network diagram 2. List the network paths 3. Determine the critical path(s) 4. Determine the float for each activity Duration Activity...
-
Cost accounting case study. The following financial statements and analysis should allow investors to make an informed decision when choosing between Glenwood Heating, Inc. located in Glenwood...
-
(i) Write the formula of distance between two points. (j) Solve the lim, (1+).
-
You work for a leveraged buyout firm and are evaluating a potential acquisition of Boogle Inc. Boogle's share price is 18 and it has 3 million shares outstanding. You believe that if you buy the...
-
The company found that the current net operating income is equal to 16% of current sales revenue. What is the company's current Margin of Safety (in dollars)?
-
Provide services to customers on account for $42,000. Purchase equipment by signing a note with the bank for $34,000. Repay $27,000 of the note in (2) above. Pay utilities of $4,200 for the current...
-
Dividends of Alphabet Technology are currently $ 2 4 . 1 0 per share, having grown at a 1 9 . 5 0 % compound annual rate over the past 1 3 years. That growth rate is expected to be maintained for the...
-
What is removed during each of the three stages of wastewater treatment: primary, secondary, and tertiary? During which state would you expect items to be recovered that were accidentally flushed,...
-
Stilton Audio is a producer of speakers and amplifiers which are housed in plastic cabinets. Currently production of the plastic cabinets as well as final product assembly is completed in-house. For...
-
Koulouraki Inc. is a gourmet cookie manufacturer. Cookies are sold by the kilogram for $10.65. Monthly production averages 200,000 kilograms. Each kilogram requires $1.75 of direct materials and 3...
-
Ole Aburish, the chief financial officer of Ur Thrift Inc., a large retailer, had just finished a meeting with Filip Noga, the chief financial officer of the large retailer, and Citlali Sandoval, its...
-
At the end of the accounting period, a journal entry is made to close variance accounts to_or________________________,and________________________,.
-
How does Porters competitive forces model help companies develop competitive strategies using information systems? Define Porters competitive forces model and explain how it works. Describe what...
-
True or false? Standard cost variances provide definitive evidence that costs are out of control and managers are not performing effectively.
Study smarter with the SolutionInn App