A plastic molding machine produces a product whose

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A plastic molding machine produces a product whose annual demand is in the millions. Themachine is automated and used full time just for the production of this product. The moldingcycle time = 45 sec. No tooling is required other than the mold, which cost $100,000 and isexpected to produce 1,000,000 moldings (products). The plastic molding compound costs$1.20/lb. Each molding weighs 0.88 lb. The only labor required is for a worker toperiodically retrieve the moldings. Labor rate of the worker = $18.00/hr including overhead.However, the worker also tends other machines and only spends 20% of his time on thismachine. Setup can be ignored because of the long production run. The molding machinewas purchased for $500,000 installed, its anticipated life = 10 years, and it operates 6,000hours per year. Equipment overhead rate = 30%. Availability = 100% and scrap rate = 0.Determine (a) the hourly production rate of the machine, (b) annual quantity of productmolded, and (c) cost per piece.4.A stamping press produces sheet-metal stampings in batches. The press is operated by aworker whose labor rate = $15.00/hr and applicable labor overhead rate = 42%. Cost rate ofthe press = $22.50/hr. and applicable equipment overhead rate = 20%. In one job of interest,batch size = 400 stampings, and the time to set up the die in the press takes 75 min. The diecost $40,000 and is expected to last for 200,000 stampings. Each cycle in the operation, thestarting blanks of sheet metal are manually loaded into the press, which takes 42 sec. Theactual press stroke takes only 8 sec. Unloading the stamping from the press takes 13 sec. Cost

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