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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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

Transcribed Image Text: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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