b. Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle theexcess above regular capacity at a cost of $23 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $2 perhundred bolts. (Round your Average inventory values to 1 decimal place. Negative amounts should be indicated by a minus sign.Leave no cells blank - be certain to enter "0" wherever required.)PeriodForecastOutputRegularSubcontractingInventoryBeginningEndingAverageCostRegularSubcontractingInventoryTotal20018921019452126195Total215 1.415 Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are inhundreds of bolts. The department has a regular output capacity of 195(00) bolts per month, except for the seventh month, whencapacity will be 210(00) bolts. Regular output has a cost of $9 per hundred bolts. Workers can be assigned to other jobs if productionis less than regular. The beginning inventory is zero bolts.MonthForecastPeriodForecastOutputRegularOvertimeOutput-ForecastCost200RegularOvertimeTotal189210-a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $19 per hundred bolts. Regularproduction can be less than regular capacity (Negative amounts should be indicated by a minus sign. Leave no cells blank - becertain to enter "0" wherever required.).194200252121891952104215194Total1,41552126195215Total1,415

a. Develop a chase plan that matches the forecast and compute the total cost of your plan Overtime is $19 per hundred bolts. Regular production can be less than regular capacity (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)

a. Develop a chase plan that matches the forecast and compute the total cost of your plan Overtime is $19 per hundred bolts. Regular production can be less than regular capacity (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

b. Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle the
excess above regular capacity at a cost of $23 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $2 per
hundred bolts. (Round your Average inventory values to 1 decimal place. Negative amounts should be indicated by a minus sign.
Leave no cells blank - be certain to enter "0" wherever required.)
Period
Forecast
Output
Regular
Subcontracting
Inventory
Beginning
Ending
Average
Cost
Regular
Subcontracting
Inventory
Total
200
189
210
194
5
212
6
195
Total
215 1.415

Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are in
hundreds of bolts. The department has a regular output capacity of 195(00) bolts per month, except for the seventh month, when
capacity will be 210(00) bolts. Regular output has a cost of $9 per hundred bolts. Workers can be assigned to other jobs if production
is less than regular. The beginning inventory is zero bolts.
Month
Forecast
Period
Forecast
Output
Regular
Overtime
Output-Forecast
Cost
200
Regular
Overtime
Total
189
210-
a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $19 per hundred bolts. Regular
production can be less than regular capacity (Negative amounts should be indicated by a minus sign. Leave no cells blank - be
certain to enter "0" wherever required.).
194
200
2
5
212
189
195
210
4
215
194
Total
1,415
5
212
6
195
215
Total
1,415

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