Questions
A manager must decide which type of machine to buy, A, B, or C. Machine costs...

A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows:

Machine Cost
A $ 80,000
B $ 70,000
C $ 40,000


Product forecasts and processing times on the machines are as follows:

PROCCESSING TIME PER UNIT (minutes)
Product Annual
Demand
A B C
1 24,000 1 4 6
2 8,000 1 3 5
3 30,000 6 4 3
4 18,000 6 5 1


a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.)

Total processing time in minutes per machine:
A
B
C
Number of each machine needed and total purchasing cost
A $
B $
C $


b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $12 each, B machines have an hourly operating cost of $14 each, and C machines have an hourly operating cost of $15 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.)

Total cost for each machine
A
B
C

In: Operations Management

A manager must decide which type of machine to buy, A, B, or C. Machine costs...

A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows:

Machine Cost
A $ 40,000
B $ 30,000
C $ 80,000


Product forecasts and processing times on the machines are as follows:

PROCCESSING TIME PER UNIT (minutes)
Product Annual
Demand
A B C
1 10,000 3 1 1
2 11,000 5 5 4
3 9,000 5 2 4
4 13,000 1 3 5


a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 8 hours a day, 230 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.)

Total processing time in minutes per machine:
A
B
C
Number of each machine needed and total purchasing cost
A $
B $
C $


b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $10 each, B machines have an hourly operating cost of $14 each, and C machines have an hourly operating cost of $11 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.)

Total cost for each machine
A
B
C

In: Operations Management

The Finishing Department of Pinnacle Manufacturing Co. prepared the following factory overhead cost budget for October...

The Finishing Department of Pinnacle Manufacturing Co. prepared the following factory overhead cost budget for October of the current year, during which it expected to operate at a 100% capacity of 10,000 machine hours.

Variable costs:
    Indirect factory wages $18,000
    Power and light 12,000
    Indirect materials 4,000
       Total variable cost $34,000
Fixed costs:
    Supervisory salaries $12,000
    Depreciation of plant and equipment 8,800
    Insurance and property taxes 3,200
       Total fixed cost 24,000
    Total factory overhead $58,000

During October, the plant was operated for 9,000 machine hours and the factory overhead costs incurred were as follows: indirect factory wages, $16,400; power and light, $10,000; indirect materials, $3,000; supervisory salaries, $12,000; depreciation of plant and equipment, $8,800; and insurance and property taxes, $3,200.

Prepare a factory overhead cost variance report for October. (The budgeted amounts for actual amount produced should be based on 9,000 machine hours.)

Enter favorable variances as negative numbers.

Pinnacle Manufacturing Co.-Finishing Department
Factory Overhead Cost Variance Report
For the Month Ending October 31
Productive capacity for the month (100% of normal) hours
Actual production for the month hours
Actual
Cost
Budget
(at Actual
Production)
Variances
Unfavorable (Favorable)
Variable factory overhead costs:
   Indirect factory wages $    $    $   
   Power and light         $   
   Indirect materials            
     Total variable factory overhead cost $    $   
Cost Information
Fixed factory overhead costs:
   Supervisory salaries $    $   
   Depreciation of plant and equipment        
   Insurance and property taxes        
     Total fixed factory overhead cost $    $   
Total factory overhead cost $    $   
Total controllable variances $    $   
Net controllable variance-favorable $   
Volume variance-unfavorable:
   Capacity not used at the standard rate
   for fixed factory overhead
   
Total factory overhead cost variance-unfavorable $   

In: Accounting

Consider the plight of Robin of Lochslay. Initially, he owns $500 of wealth and the Sheriff...

Consider the plight of Robin of Lochslay. Initially, he owns $500 of wealth and the Sheriff of Nottingham also owns $500 of wealth. If they are the only two individuals who own wealth near Sherwood Forest, the Lorenz Curve lies on top of the 45 - degree line. True or false?

True

False

In: Economics

3. Explain the relationship between real exchange rates and output in a model of short run...

3. Explain the relationship between real exchange rates and output in a model of short run response to policy shocks. Why czn’t we answer this question about the long run relationship for an economy near full employment? You should graph relative demand and supply to make this happen.

In: Economics

Examine the financial ratios, stock valuation and news about Amazon. Do you see the firm’s share...

Examine the financial ratios, stock valuation and news about Amazon. Do you see the firm’s share price rising/decreasing in the near-, intermediate- and long-term? Do you believe the firm has a stable future of sustainable growth, currently stagnant, or is heading for financial failure? Why?

In: Finance

What are the signs of opioid withdrawal? What are some medical uses of marijuana or cannabinoids...

What are the signs of opioid withdrawal?

What are some medical uses of marijuana or cannabinoids

Name 3 adverse effects of general anesthetics and the nursing care appropriate to help with these effects.

Why are local anesthetics with epinephrine not used near toes, fingers, noses, ears, or penis? Describe balanced anesthesia.

In: Nursing

List at least two ways the retina has adapted to minimize the potential problem caused by...

  1. List at least two ways the retina has adapted to minimize the potential problem caused by the photoreceptors being the last layer of the retina that light reaches.
  2. Describe the events that take place during accommodation for near vision.
  3. Detail the separate mechanisms activated in photoreceptor cells in the presence and in the absence of light.

In: Anatomy and Physiology

Why concrete mix proportions need to be designed? After completing the design mix process, explain what...

Why concrete mix proportions need to be designed? After completing the design mix process, explain what are the next steps to be done? If the same concrete mix proportions calculated in (a) is to be used for application near marine environment or in heavy industrial area, suggest with justification the possible modification that can be done.         

In: Civil Engineering

Walton Company has measured its quality costs for the past two years. After the company gathers...

Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below:

Last Year This Year
Prevention costs $ 357,000 $ 650,000
Appraisal costs $ 445,000 $ 545,000
Internal failure costs $ 790,000 $ 500,000
External failure costs $ 1,100,000 $ 680,000


Required:

1.
Calculate the total cost of quality last year and this year.




2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your answers to 1 decimal place.)



3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your answers to 1 decimal place.)



4-a. Calculate the change in total cost of quality over the two-year period.

In: Accounting