A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. This exercise only contains part a. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Table 1 Avg Dem Per Prod. Day Inventory carrying cost Other data $8 per unit per month Production Demand Month Days Forecast Subcontracting cost per unit $12 per unit Average pay rate Overtime pay Rate $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit 1 January 22 950 2 February 18 750 3 March 21 750 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) 4 April 21 1,000 5 May 6 June 22 1,300 20 1,050 $600 per unit The production rate per day units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) Regular Production Subcontract Month Demand (Units) 1 January 950 2 February 750 3 March 750 4 April 1,000 5 May 6 June 1,300 1,050 The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $| (Enter your response as a whole number.)
A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. This exercise only contains part a. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Table 1 Avg Dem Per Prod. Day Inventory carrying cost Other data $8 per unit per month Production Demand Month Days Forecast Subcontracting cost per unit $12 per unit Average pay rate Overtime pay Rate $5 per hour ($40 per day) $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit 1 January 22 950 2 February 18 750 3 March 21 750 Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) 4 April 21 1,000 5 May 6 June 22 1,300 20 1,050 $600 per unit The production rate per day units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) Regular Production Subcontract Month Demand (Units) 1 January 950 2 February 750 3 March 750 4 April 1,000 5 May 6 June 1,300 1,050 The total regular production cost = $ (Enter your response as a whole number.) The total subcontracting cost = $| (Enter your response as a whole number.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
100%
Transcribed Image Text:A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are
presented in the table below. There are 8 hours of production per day.
This exercise only contains part a.
a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using
subcontracting to meet remaining demand. Evaluate this plan.
To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number).
Table 1
Avg Dem Per
Prod. Day Inventory carrying cost
Other data
Production
Demand
$8 per unit per month
Month
Days
Forecast
Subcontracting cost per unit $12 per unit
Average pay rate
Overtime pay Rate
$5 per hour ($40 per day)
$7 per hour (above 8 hrs per
day)
1.6 hrs per unit
$300 per unit
1 January
22
950
2 February
18
750
з March
21
750
Labor-hours per unit
Cost of increasing daily
production rate (hiring &
training)
Cost of decreasing daily
production rate (layoffs)
4 April
21
1,000
5 May
22
1,300
June
20
1,050
$600 per unit
The production rate per day
units. (Enter your response as a whole number.)
%3D
Fill in the table below. (Enter your responses as whole numbers.)
Regular
Production
Subcontract
Month
Demand
(Units)
1
January
950
2 February
750
March
750
4 April
1,000
5 May
1,300
June
1,050
The total regular production cost = $
(Enter your response as a whole number.)
The total subcontracting cost = $
(Enter your response as a whole number.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education