hr_om11_ism_ch13

So 2 10 employees 20 days 400 units per period period

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: on savings in overtime costs and the cost of Forrester, it would appear to be unclear, as savings total only $30,625. On the other hand, current employees are drawing overtime pay of $40,000 (averaging $10,000 each) during March and April, and may be very unhappy over the loss of income. We would have to carefully examine the other 6 months to see if hiring is merited. Method → Produce to demand (let workforce vary) 13.21  (a) Estimated Reg. Time Shortages: Lost sales – Shortages not carried from month to month Overtime Billable Billable Reg. Time Overtime Forrester Forrester All months → $1,000 $1,800 $200 $0 Hours $0 $0 Month hours CPAs Hours Cost $1,200 Hours Cost Cost Capacities Units  Jan   660 5 800  $25,000   0       $0    0      $0 Month Demnd Regtm Ovrtm Subcon Regtm    Ovrtm Subcon Holdng Shortg Increase Decreas  Feb   550 5 800  $25,000   0       $0    0      $0   e  Mar 1,100 5 800  $25,000 300 $18,750    0      $0 Init     0     0   0   0  Apr 1,320...
View Full Document

Ask a homework question - tutors are online