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Burka [1]
2 years ago
11

An upset forging plant will be built to produce 2,000,000 parts per year. The plant will operate for three 8-hour shifts per day

, five days per week, 48 weeks per year. It is estimated that the average batch size will be 2000 parts, the average setup time between batches will be 3 hours, and the average time to produce a part will be 20 seconds. For both production and setup, the availability for each forging machine will be 95%.
(a) Determine how many forged parts can be produced in 1 month, if there are 8 hours worked per day and an average of 21 days per month at one shift per day.
(b) What is the labor productivity ratio of the forge shop, expressed as parts per worker-hour?
Business
1 answer:
miv72 [106K]2 years ago
3 0

Answer:

A. 16

B. 57.14

Explanation:

forging presses = 20

setup time = 3 hours

Time required to produce 1 batch = 600 *45 s = 7.5 hours

total workforce = 7 in all;

a. no of forged parts produced in a month ;

total time required to produce 1 forged part = 3 + 7.5 = 10.5 hours;

working hours a day = 8 ;

total no of working days = 21/month;

total no of batches produced n= 21*8/10.5;

n = 16;

so no of parts = 16 * 600 = 9600;

b. labor productivity P= parts /work hour;

P = 9600/21*8 = 57.14

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A foreign company (whose sales will not affect cornish's market) offers to buy 3,000 units at $17.00 per unit. in addition to va
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Trescott company had the following results of operations for the past year:

Sales (20,000 units at $22) $440,000

Direct materials and direct labor $200,000

Overhead (40% variable) 100,000

Selling and Administrative expenses (all fixed) 92,000 (392,000)

Operating income $ 48,000

A foreign company (whose sales will not affect Trescott's market) offers to buy 3,000 units at $17.00 per unit. In addition to the variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $1,000. If Trescott accepts the offer, its profits will increase (decrease) by:

Answer : If Cornish accepts this order, its profits will increase by $13,500.

<u>Calculation of Variable Costs per unit :</u>

Direct Material and labor per unit = Total Direct Material and labor / No. of units sold

Direct Material and labor per unit =200000/20000 = $10

Variable Overhead per unit = Total Variable Overhead / No. of units sold

Variable Overhead per unit = (100000*0.4)/20000 = $2

Variable Cost per unit = $12 (Direct Material and labor per unit + Variable Overhead per unit)

Selling price of new order = $17 per unit

No. of units = 3,000

Increase in Fixed Costs = Inc in fixed overhead + inc in S&A Expenses

Increase in Fixed Costs = $1500 (500 + 1000)

Total Cost of new order = (Variable Cost per unit * No. of units) + Increased Fixed Cost

Total Cost of new order = (12*3000) + 1500 = $37,500

Total Revenues from new order = Selling price per unit * No. of units sold

Total Revenues = $51,000 (17 *3,000)

Profit from new order = Total Revenues from new order - Total Cost of new order

Profit from new order = 51000 - 37500 = $13,500

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What are the typical sources for gathering factual data for informal reports? check all that apply. printed material surveys and
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A service contract for a video projection system costs $70 a year. you expect to use the system for five years. instead of buyin
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Sierra Co. has provided the following information: Work in Process: Feb 1 25,000 units (100% complete for materials, 60% complet
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Answer:

The answers are as follows:

a. 90, 000 units

b. Materials: 105,000; Conversion: 93,000

c. Materials: $1.4762; Conversion: $2.9785 (rounded to 4 decimal places)

d. $ 400,922 (rounded to whole dollar amount)

e. $31, 078 (rounded to whole dollar amount)

Explanation:

Work in process valuation entails calculating the value of goods which are started and completed during the period plus the value of goods which are not yet completed but have been started during the current period. In order to calculate the required, the following abbreviations will be employed:

<u>Op.Wip</u> is the value of the opening inventory

<u>Current </u>is the total cost of production in the current period

<u>Total C </u>is the total cost of production incurred during the current period including opening inventory

<u>Comp. U</u> is the quantity of completed units in the current period

<u>WIP eq.U </u>is the equivalent units of production for the current period. Equivalent units are the number of units that are computed for partially completed units of production.

<u>Total eq.U</u> is the total quantity of units produced including equivalent units (completed units plus equivalent units)

<u>CPU</u> is the cost per unit of production for materials as well as conversion costs

<u>Mat</u> represents materials and <u>CC</u> represents conversion costs

<u>Part 1</u>

            <u> $ </u>          <u> $ </u>           <u> $ </u>                <u> $ </u>          <u> $ </u>                  <u> $ </u>    

    Op. Wip  Current  Total C    Comp. U   WIP eq.U  Total eq.U  

Mat  35,000  120,000  155,000   90,000     15,000        105,000                  

CC   <u>43,000</u>  234,000  <u>277,000</u>  90,000      3,000        93,000                            

       <u>78,000</u>                    <u>432000</u>                                          

Equivalent units: Materials (15,[email protected]% completion = 15,000 units); Conversion (15,[email protected]% completion = 3,000 units)

Cost Per Unit (CPU):

Materials cost: $1.476*  ($155,000/105,000 units)

Conversion cost: $2.978** ($277,000/93,000 units)

Total CPU: $4.454** ($1.476 + $2.978)     

*1.476190476

**2.978494624

***4.4546851

<u>Part 2:</u>

Work in Process:                                                                <u>$</u>

     Materials: (15000 units * 1.476190476)                22,142.85714

    Conversion Costs: (3000 units * 2.978494624)  8935.483871

Completed units: (90,000 units * 4.4546851)       <u>    400,921.659</u>

                                                                                <u>      </u><u> 432, 000   </u>

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2 years ago
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