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 (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 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 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 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 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
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
In: Anatomy and Physiology
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 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