hr_om11_ism_ch13

B 770 630 735 735 770 700 total cost ct 69440 37200

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:   170     570   840  500 2,480 Plan 5 cost analysis: Regular production: C R = 6 persons × $80 × 124 = $59,520 Subcontract cost @ $10/unit: C SC = 2,480 units × $20 / unit = $49,600 Total cost: CT = $59,520 + $49,600 = $109,120 (not preferable to Plan 2 at $105,152, but preferable to Plan 4 at $113,488). (b) 770 630 735 735 770 700 Total cost: CT = 69,440 + 37,200 = $106,640 8 = 30 units/day 1.6 Expected Demand  900  700  800 1,200 1,500 1,100 C R = 7 persons × $80 × 124 = $69,440 Hours/day Hours/unit Month Production (@ 35/day) Plan 6 cost analysis: Regular production: 6,200 Average daily production requirement = 124 = 50 units/day Constant workforce of 6 persons; subcontract to meet extra demand: Subcontract cost = $20/unit Production rate/day = Persons × Expected Demand  Jan  Feb  Mar  Apr  May  Jun Demand Per Day Plan 6 constant workforce of 7 persons; subcontract to meet extra demand: Labor → 1.6 hours/unit Hours /day Production rate /day = Persons × Hours /unit 8 = 7× = 35 units /...
View Full Document

Ask a homework question - tutors are online