Question

In: Accounting

In a manufacturing company at present, the pattern shop and the maintenance department are located in...

In a manufacturing company at present, the pattern shop and the maintenance department are located in the same room. One large counter is used by both maintenance personnel to get tools and parts and by sand molders that need various patterns for the molding operation. Peter and Bob, who work behind the counter, are able to service a total of 10 people per hour (or about 5 per hour each). On the average, 4 people from casting/maintenance and 3 people from the molding/pattern department arrive at the counter per hour. People from the molding department and from casting dept arrive randomly, and to be served they form a single line. Pete and Bob have always had a policy of first come, first served. This is a poisson arrival pattern exponential service time model. Because of the location of the pattern shop and casting department, it takes about 6 minutes for a person from the casting/maintenance department to walk to the counter, and it takes about 2 minute for a person to walk from the molding. Separating the maintenance shop from the pattern shop had a number of advantages. It would take people from their department only 2 minutes now to get to the department counter. Using time and motion studies, George was also able to determine that improving the layout of the maintenance department would allow Bob to serve 6 people from the maintenance department per hour, and improving the layout of the pattern department would allow Pete to serve 7 people from the molding shop per hour. This would act as a single server system for both the departments separately. In the present system how much minutes are spent in casting ? Give only numeric answer 7.5 points

QUESTION1 In the present system how much minutes are spent in casting ? Give only numeric answer

QUESTION 2 In the present system how many minutes are spent in molding ? Give only numeric answer 7.5 points

QUESTION 3 How much time in minutes would the new layout save in total for both the departments? Give only numeric answer 7.5 points

QUESTION 4 If maintenance personnel were paid $9.50 per hour and molding personnel were paid $11.75 per hour, how much could be saved per hour with the new factory layout? Give only numeric answer

Solutions

Expert Solution

Ans 1. Total minutes spent in casting under present system for 4 people = 6 minutes * 2 ways * 4 people

= 48 minutes

Ans 2. Total minutes spent in molding under present system for 3 people = 2 minutes * 2 ways * 3 people

= 12 minutes

Ans 3. Total minutes spent in casting under new system for 6 people = 2 minutes * 2 ways * 6 people

= 24 minutes

Total minutes spent in molding under new system for 7 people = 2 minutes * 2 ways * 7 people

= 28 minutes

Saving for casting department if 6 people were served= time under old system - time under new system  

= (48 minutes/4 people)* 6 people - 24 minutes

= 48 minutes

Saving for molding department if 7 people were served= time under old system - time under new system  

= (12 minutes/3 people)* 7 people - 28 minutes

= 0 minutes

Total saving of both departments = 48 minutes + 0 minutes

= 48 minutes

Ans 4. Only casting department would save.

Saving per hour of casting department with new layout = $ 9.50 per hour

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

In a manufacturing company at present, the pattern shop and the maintenance department are located in...
In a manufacturing company at present, the pattern shop and the maintenance department are located in the same room. One large counter is used by both maintenance personnel to get tools and parts and by sand molders that need various patterns for the molding operation. Peter and Bob, who work behind the counter, are able to service a total of 10 people per hour (or about 5 per hour each). On the average, 4 people from casting/maintenance and 3 people...
Wilkens Company Wilkens Company wants to determine the cost behavior pattern of maintenance costs. Wilkens has...
Wilkens Company Wilkens Company wants to determine the cost behavior pattern of maintenance costs. Wilkens has decided to use linear regression by employing the equation y = a + bx for maintenance costs. The prior year's data regarding maintenance hours and costs, are given in the data below. Hours of Activity Maintenance cost January 490 5,700 February 325 4,210 March 425 5,050 April 360 4,510 May 500 5,680 June 450 5,260 July 425 5,050 August 375 4,630 September 470 5,420...
Mushed’s String Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are...
Mushed’s String Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Departments Maintenance Personnel A B Budgeted costs $320,000 $80,000 $160,000 $240,000 Budgeted maintenance-hours NA 200 240 160...
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are...
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $40,000 are allocated based on the number of employees. The costs of operating departments A and B are $80,000 and $120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $160,000 $40,000 $80,000 $120,000 Budgeted maintenance-hours NA 400...
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are...
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of budgeted machine-hours. Personnel Department costs of $100,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $300,000 $100,000 $160,000 $240,000 Budgeted maintenance-hours NA 800...
Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are...
Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Department Maint Department Personnel Department A B Budgeted Costs $320,000 $80,000 $160,000 $240,000 Budgeted Maintenance hours NA...
The Grey Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of...
The Grey Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $300,000 are allocated on the basis of machine hours. The Accounting Department's costs of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $300,000 and $500,000, respectively. Maintenance Accounting A B Machine hours 480 20 2,300 200 Number of employees 2 2 8 4 What are the total service...
A. The Grey Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs...
A. The Grey Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $300,000 are allocated on the basis of machine hours. The Accounting Department's costs of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $300,000 and $500,000, respectively. Maintenance Accounting A B Machine hours 480 20 2,300 200 Number of employees 2 2 8 4 What are the total...
Rock Shop Manufacturing Company makes specialty tools. In July, Rock Shop incurred manufacturing costs of $4,000,000...
Rock Shop Manufacturing Company makes specialty tools. In July, Rock Shop incurred manufacturing costs of $4,000,000 for direct materials, direct labour, and overhead. 30% of the total costs represents overhead applied. The overhead rate is $1 for every $0.50 of direct labour costs incurred. Inventory balances were: July 1 / July 31 Raw materials $100,000 / $ 80,000 Work in process 90,000 / 95,000 Finished goods 120,000 / 130,000 Instructions a) Determine the cost of raw materials purchased in July....
TG Sdn. Bhd. is an electrical manufacturing company located in Pagoh. It is a wellestablished company...
TG Sdn. Bhd. is an electrical manufacturing company located in Pagoh. It is a wellestablished company with a favorable reputation for the quality of their products. The company manages to increase its production to meet their customer’s demand. Among the company’s goals is to have a better management in controlling product costs. Presented below is the information for the year ended 31 December 2019: RM Sales 6,300,000 Sales Expenses 210,000 Administration Expenses 135,000 Income Tax Expenses 75,000 Direct Material Purchased...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT