A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product Annual Demand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.) Total processing time in minutes per machine: A 208,000 Numeric ResponseEdit Unavailable.208,000correct. B 210,000 Numeric ResponseEdit Unavailable.210,000correct. C 232,000 Numeric ResponseEdit Unavailable.232,000correct. Number of each machine needed and total purchasing cost A 1.5 Numeric ResponseEdit Unavailable.1.5correct. $ 90,000 Numeric ResponseEdit Unavailable.90,000incorrect. B 1.5 Numeric ResponseEdit Unavailable.1.5correct. $ 75,000 Numeric ResponseEdit Unavailable.75,000incorrect. C 2 Numeric ResponseEdit Unavailable.2correct. $ 120,000 Numeric ResponseEdit Unavailable.120,000correct. b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $15 each, and C machines have an hourly operating cost of $10 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.) Total cost for each machine A 131,467 Numeric ResponseEdit Unavailable.131,467incorrect. B 125,417 Numeric ResponseEdit Unavailable.125,417incorrect. C 158,667 Numeric ResponseEdit Unavailable.158,667correct. I really need help to solve this as it is due tonight and I have worked and re-worked this for 3 days. QUESTION: You can see what I have gotten correct and what I have not. I have checked all my formulas and rounding and it works for the part C. I am having trouble with the A and B for the last two st. What am I doing wrong.
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.
A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows:
| Machine | Cost | |
| A | $ | 60,000 |
| B | $ | 50,000 |
| C | $ | 60,000 |
Product
| PROCCESSING TIME PER UNIT (minutes) | |||||
| Product | Annual Demand |
A | B | C | |
| 1 | 16,000 | 3 | 4 | 4 | |
| 2 | 10,000 | 6 | 5 | 1 | |
| 3 | 15,000 | 1 | 3 | 6 | |
| 4 | 17,000 | 5 | 3 | 4 | |
a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.)
| Total processing time in minutes per machine: | |
| A | 208,000 Numeric ResponseEdit Unavailable.208,000correct. |
| B | 210,000 Numeric ResponseEdit Unavailable.210,000correct. |
| C | 232,000 Numeric ResponseEdit Unavailable.232,000correct. |
| Number of each machine needed and total purchasing cost | ||
| A | 1.5 Numeric ResponseEdit Unavailable.1.5correct. | $ 90,000 Numeric ResponseEdit Unavailable.90,000incorrect. |
| B | 1.5 Numeric ResponseEdit Unavailable.1.5correct. | $ 75,000 Numeric ResponseEdit Unavailable.75,000incorrect. |
| C | 2 Numeric ResponseEdit Unavailable.2correct. | $ 120,000 Numeric ResponseEdit Unavailable.120,000correct. |
b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $15 each, and C machines have an hourly operating cost of $10 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number. Omit the "$" sign.)
| Total cost for each machine | |
| A | 131,467 Numeric ResponseEdit Unavailable.131,467incorrect. |
| B | 125,417 Numeric ResponseEdit Unavailable.125,417incorrect. |
| C | 158,667 Numeric ResponseEdit Unavailable.158,667correct. |
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