Question
In: Operations Management
The Watkins Chemical Company produces a chemical compound that is used as a lawn fertilizer. The...
The Watkins Chemical Company produces a chemical compound that is used as a lawn fertilizer. The compound can be produced at a rate of 10,533 pounds per day. Demand for the compound is 0.9 million pounds per year. The fixed cost of setting up for a production run of the chemical is $2,773, and the variable cost of production is $3.23 per pound. The annual holding cost per pound of the chemical amounts to 5% of the value. Assume that there are 250 working days in a year.
What is the total annual holding cost if Qp* is produced?
A. 10,038.122
B. 14,196.048
C. 11,517.336
D. 8,143.986
Solutions
keosha answered 3 hours agoRelated Solutions
The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements (in thousands of gallons)...
The Donald Fertilizer Company produces industrial chemical
fertilizers. The projected manufacturing requirements (in thousands
of gallons) for the next four quarters are 80, 50, 80, and 130,
respectively. A level workforce is desired, relying only on
anticipation inventory as a supply option. Stockouts and backorders
are to be avoided, as are overtime and undertime.
a. Determine the quarterly production rate required to meet
total demand for the year, and minimize the anticipation inventory
that would be left over at the...
A company is creating a new fertilizer additive for lawn seed, which will be a mixture...
A company is creating a new fertilizer additive for lawn seed,
which will be a mixture of nitrogen, phosphate, and potash. Based
on their research, the total amount fertilizer added must be at
least 14 oz. per 5 lb. bag of lawn seed, but should not exceed 20
oz. per 5 lb. bag. At least ¼ oz. of nitrogen must be used for
every ounce of phosphate, and at least 1 oz. of potash must be used
for every ounce...
A company is creating a new fertilizer additive for lawn seed, which will be a mixture...
A company is creating a new fertilizer additive for lawn seed,
which will be a mixture of nitrogen, phosphate, and potash. Based
on their research, the total amount fertilizer added must be at
least 14 oz. per 5 lb. bag of lawn seed, but should not exceed 20
oz. per 5 lb. bag. At least ¼ oz. of nitrogen must be used for
every ounce of phosphate, and at least 1 oz. of potash must be used
for every ounce...
Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company...
Boron Chemical Company produces a synthetic resin that is used
in the automotive industry. The company uses a standard cost
system. For each gallon of output, the following direct
manufacturing costs are anticipated:
Direct labor: 2 hours at $25.00 per hour
$
50.00
Direct materials: 2 gallons at $10.00 per gallon
$
20.00
During December of the current year, Boron produced a total of
2,500 gallons of output and incurred the following direct
manufacturing costs:
Direct labor: 4,900 hours worked...
Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company...
Boron Chemical Company produces a synthetic resin that is used
in the automotive industry. The company uses a standard cost
system. For each gallon of output, the following direct
manufacturing costs are anticipated:
Direct labor: 2.80 hours at $33.00 per hour
$92.40
Direct materials: 2.80 gallons at $18.00 per
gallon
$50.40
During December of the current year, Boron produced a total of
2,580 gallons of output and incurred the following direct
manufacturing costs:
Direct labor: 7,100 hours worked @ an...
Boron Chemical Company produces a synthetic resin that is used in the automotive industry. The company...
Boron Chemical Company produces a synthetic resin that is used
in the automotive industry. The company uses a standard cost
system. For each gallon of output, the following direct
manufacturing costs are anticipated:
Direct labor: 2 hours at $25.00 per hour
$
50.00
Direct materials: 2 gallons at $10.00 per gallon
$
20.00
During December of the current year, Boron produced a total of
2,500 gallons of output and incurred the following direct
manufacturing costs:
Direct labor: 4,900 hours worked...
The Hayes Chemical company produces a chemical used in dry cleaning. Its accounting system uses standard...
The Hayes Chemical company produces a chemical used in dry
cleaning. Its accounting system uses standard costs. The standard
per .5-gallon can of chemical call for 1.20 gallons of material and
1.50 hours of labor. (1.20 gallons of material are needed to
produce a .5-gallon can of product due to evaporation.) The
standard cost per gallon of material is $6.00. The standard cost
per hour for labor $9.00. Overhead is applied at the rate of $7.75
per can. Expected production...
Problem 11-5 The Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system...
Problem 11-5
The Hayes Chemical Company produces a chemical used in dry
cleaning. Its accounting system uses standard costs. The standards
per 0.40-gallon can of chemical call for 1.20 gallons of material
and 1.50 hours of labor. (1.20 gallons of material are needed to
produce a 0.40-gallon can of product due to evaporation.) The
standard cost per gallon of material is $6.00. The standard cost
per hour for labor is $8.00. Overhead is applied at the rate of
$8.03 per...
Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs....
Hayes
Chemical Company produces a chemical used in dry cleaning. Its
accounting system uses standard costs. Standards for each
0.5-gallon can of chemical and actual data for Hayes Chemical
follow:
Standards and budgeted information:
Gallons of material per can of
chemical
1.20
Hours of labor per can of
chemical
1.50
Standard cost per gallon of
material
$6.00
Standard cost per hour of labor
$9.00
Overhead application rate per can
$7.75
Expected production - cans...
An essentially 100% yield is necessary for a chemical reaction used to analyze a compound, but
An essentially 100% yield is necessary for a chemical reaction used to analyze a compound, but it is almost never expected for a reaction that is used to synthesize a compound. Explain this difference.
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