Right now is Oct 27, 2021. You are developing an aggregate production plan for 2022. Suppose the beginning inventory at the first quarter of 2022 is estimated to be 97 units. The forecasted demand for Quarter 1 through Quarter 4 of 2022 are 1,323, 1,643, 1,162, and 1,100 units, respectively. The cost of overtime production is $73 per unit and the cost of holding inventory is $5.09 per unit per quarter. You want to use the level production plan with overtime. Consequently, you set a constant regular-time production at 1,155 units in each quarter of 2022. If the demand in each quarter must be satisfied, what is the needed overtime production in Quarter 2 of 2022?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Right now is Oct 27, 2021. You are developing an aggregate
production plan for 2022.
Suppose the beginning inventory at the first quarter of 2022 is
estimated to be 97 units.
The forecasted demand for Quarter 1 through Quarter 4 of 2022 are
1,323, 1,643, 1,162,
and 1,100 units, respectively. The cost of overtime production is
$73 per unit and the cost
of holding inventory is $5.09 per unit per quarter.
You want to use the level production plan with overtime.
Consequently, you set a constant
regular-time production at 1,155 units in each quarter of 2022. If
the demand in each quarter
must be satisfied, what is the needed overtime production in
Quarter 2 of 2022?
Transcribed Image Text:Right now is Oct 27, 2021. You are developing an aggregate production plan for 2022. Suppose the beginning inventory at the first quarter of 2022 is estimated to be 97 units. The forecasted demand for Quarter 1 through Quarter 4 of 2022 are 1,323, 1,643, 1,162, and 1,100 units, respectively. The cost of overtime production is $73 per unit and the cost of holding inventory is $5.09 per unit per quarter. You want to use the level production plan with overtime. Consequently, you set a constant regular-time production at 1,155 units in each quarter of 2022. If the demand in each quarter must be satisfied, what is the needed overtime production in Quarter 2 of 2022?
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