Answered: A furnace repair team services a design…

A furnace repair team services a design capacity of 6 furnaces per day with an effective capacity of 6 furnaces per day. What is the team's utilization if it repairs an average of 4 furnaces per day?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...

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A work element takes 20 hours of labor of a technician. Currently, the technician makes $22.50 per hour. For this project, the overhead charges are 72% of the direct labor charges and 10% personal time was assumed for this work element. a. What would be total direct labor cost to complete the work element? b. What would be the total overhead cost to complete the work element? c. What would be the total personal time cost to complete the work element?
time has been 140 minutes, consisting of the following steps: Turn off machine and remove fixture from lathe Go to tool room with fixture Record replacement of fixture to tool room Return to lathe Clean lathe Return to tool room Record withdrawal of new fixture from tool room Return to lathe Install new fixture and turn on machine Total setup time 15 minutes b. 15 18 20 20 20 12 15 5 140 minutes a. A company plans to setup a machine to increase the productivity. The average setup time is 140 minutes. Do you think the management needs to minimize the setup time. Identify the reason that supports the answer. a. Yes b. No Reason: a. The setup time is not a concern of the company as it is not related to productivity of the company. b. The setup time should be considered because long setup time leads to increased economic cost of the setup. c. The cost incurred for setup can be ignored as it is related to machinery. d. Long setup cost can be recovered as depreciation. A company plans to…
Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are 3,000, and expected number of inspections is 600. The best activity rate for inspection is as follows: a. 40 per inspection b. 40 per hour c. 200 per inspection d. 200 per hour
A work center consisting of 7 machines is operated 16 hours a day for a 5-day week.Utilization is 80%, and efficiency is 110%. What is the rated weekly capacity instandard hours?
A work element takes 20 hours of labor of a technician. Currently, the technician makes $22.50 per hour. For this project, the overhead charges are 72% of the direct labor charges and 10% personal time was assumed for this work element. What is the grand total cost to complete this work element? (the total be the sum of the direct labor, overhead, and personal time cost)?
Please resolve this problem using ABC method Suppose that we have a problem in which three people have been hired in the company's headquarters and are working on new projects. Their work has R&D nature. The time cycle of the problem is from month 1 to 12. These people have been paid from month 1 to 12 and finally will get two projects in the 5th month. The salaries of these three people have been recorded as overhead expenses in 12 months. According to the ABC method, should the salaries of all these 12 months be divided on these two projects (depending on the complexity of each project) or the sum of salaries of month 1 to 5 or only the salaries of the fifth month should be divided on these two projects? Thanks to the relevant experts for their response
What is the Overhead Rate?
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