1Western UniversityDAN ManagementMOS 3330MOS 3330 Test 2Calculation ReviewGeneral TipsRecommended steps for how to prepare for calculation questions in Test 2:1.Review computational examples in the lecture slides.−Familiarize yourself with typical input data for an aggregate plan.−Familiarize yourself with the format of the aggregate plan tableas shown in the lecture slides(you don’thave to memorize the column headings because they will be provided in the test).−Understand how to calculate columns of the aggregate plan table and the total cost.−Understand the aggregate plan examples shown in the lecture slides (Examples 1a to 1d and 2a to 2d)−Understand the differences among level, chase, and hybrid approaches; for Test 2, you have to determinewhich one to use based on the description of the plan given in the test question.2.Download the formula sheet from the course web site.−Test 2 covers themiddleone-third of the formula sheet.−Recall that symbols arenotdefined on the formula sheet; you should know what they stand for.3.Study end-of-chapter problems in the textbook.−The textbook questions may be confusing because they sometimes refer to hybrid cases as “level” or“chase”; also, their solutions sometimes include additional improvement, which was not specified in thequestion.−If you get stuck with a textbook question,check the solutionright away and learn from it.−You don’t have to do all problems in the textbook;see below for suggested problems.Rounding Reminder1.For a physical quantity (e.g., order quantity), the final answer should be an integer.2.For a dollar amount, the final answer should have two decimal points.Textbook Suggested ProblemsAggregate Planning (Chapter 13)For problems 1 to 7, some of the costs are provided per hour instead of per unit (the lecture slides typically provided costsper unit). All you have to do is to convert the cost per hour to the cost per unit once at the beginning, and you don’t havetoworry about conversion after that.For problems 1 to 7, the conversion has been done for you below:•Convert cost per hour to cost per unit: (Regular-time labor cost per hour)(labor standard per unit) = (regular-timelaborcost per unit)= 126 = $72. This is the cost of regular production.•(Overtime labor cost per hour) × (labor standard per unit) = (overtime laborcost per unit) =166 = $96. This is thecost of overtime production.•Convert“time available” to “production rate”:(regular time available per period) / (labor standard per unit) = 160/6= 26.67. This is the regular production rate per worker per period.