Structure Furniture, manufactures coffee tables. Structure Furniture has a policy of adding a 20%markup to full costs and currently has excess capacity. The following information pertains to thecompany's normal operations per month:Output unitsMachine-hours30,000tables8,000hoursDirect manufacturing labour-hours10,000hoursDirect materials per unitDirect manufacturing labour per hourVariable manufacturing overhead costsFixed manufacturing overhead costsProduct and process design costsMarketing and distribution costsS100S12$322,500$1,200,000$900,000$1,125,000a) Structure Furniture is approached by an overseas customer to fulfill a one-time-onlyspecial order for 1,000 units. All cost relationships remain the same except for a one-timesetup charge of $20,000. No additional design, marketing, or distribution costs will beincurred. What is the minimum acceptable bid per unit on this one-time-only specialorder?b) What is the Structure Furniture full product cost for long-run pricing purposes?

Output units 30000 tables Machine hours 8000 hours Direct manufacturing labors-hours 10000 hours…

Answered: Structure Furniture, manufactures…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

The Eagle Machine Company averaged $2 million in inventory last year, and the cost of goods sold was $10 million. Figure 12.5 shows the breakout of raw materials, work-in-process, and finished goods inventories. The best inventory turnover in the company’s industry is six turns per year. If the company has 52 business weeks per year, how many weeks of supply were held in inventory? What was the inventory turnover? What should the company do?
In anticipation of an upcoming engagement, an internal audit team recently toured the company’s receiving, warehousing, and production facilities to obtain a better understanding of day-to-day operations. Listed below are selected items noted by the internal audit team during the tour: ■A large quantity of materials was sitting in a corner near the unloading docks. The receiving manager informed the audit team that the delivery trucks had already left. The materials had not yet been counted or inspected. ■One section of the warehouse contained large quantities of items with inventory tags from several physical inventory counts. The warehouse manager told the audit team that this was the company’s inventory of spare parts that it was required by law to keep on hand for specified time periods. ■Hazardous chemicals are used in the inventory finishing process. Waste chemicals are stored in large plastic barrels in a designated area of the factory before being shipped for disposal. For each…
Fanning Company and Finch Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead) Required Fanning Company Finch Company $ 145,750 $ 261,600 23,000 27,000 10,500 $ 21,000 a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.
Let’s say that Glass For Sale, Inc. manufacturers replacement glass for the home remodelingindustry. In January, the company produces fifteen-thousand windows and ended the monthwith nine-thousand windows in inventory. Glass For Sale’s management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable due to the fact that it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown in Table two, the management teamdoes not think a smooth production schedule with the same production quantity each month is possible. The company’s cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by one dollar for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next…
When selecting date units for grouping, users can select multiple units of measure. True False
A typical Latino coffee farmer has fixed costs of $10,000 per year. Under the old distribution system, the farmer is paid $.40 per pound (U.S. weight measure) and the farmer’s variable cost per pound is $.30. What is the farmer’s breakeven point in units (pounds) under the old system? What is the farmer’s breakeven point in dollars? Show all math.
Last Year Sales $208,000 $221,000 Cost of goods sold 106,000 116,000 Gross margin 102,000 105,000 Other expenses 49,000 49,000 Net income 53,000 56,000 Finished goods inventory 2,700 5,000 Work-in-process inventory 11,000 8,000 Raw material inventory 5,500 7,000 Total inventory (average for year) 19,200 20,000 Other current assets 93,000 109,000 Other assets 210,000 249,000 Total assets 322,200 378,000 ^THIS YEAR The plant manager, Murat Kristal, at York Technologies makes Aircraft Navigation Systems. He expects you, as the new OM analyst, to provide some insight for performance of the plant. High on his list is an understanding of his inventory…
â€¢ 1An advantage of a make-to-stock process is which of the following? o It responds directly to customer orderso It allows the firm to avoid inventory costso Rapid delivery of a standard producto All units of output are uniqueCorrectâ€¢ 2According to Littleâ€™s law, which of the following can be used to estimate inventory?o Set up time times throughput rateo Process time times cycle timeo Process velocity times flow timeo Throughput rate times flow timeCorrectâ€¢ 3Which of the following is a principle of reengineering? o Integrate the outcomes of parallel activitieso Organize around the taskso Treat geographically dispersed resources as though they were centralizedo Capture information many times, at the source and where it is interpretedCorrectâ€¢ 4Which of the following is one of the major types of stakeholders impacted by most consulting projects?o International government regulatorso Other consultantso…
Procurement and Inventory management at Nestle The procurement life cycle followed by Nestle is broken up into several integrated components inthe business and involves large number of intermediary processes like purchase requisition,purchase order, vendor involvement, goods receipt and inventory management and accountspayable. All these processes make together the life cycle of procurement process.Each time an inventory item is received or issued from the inventory at one of the Nestle locations,the system automatically updates stock quantities and values, and reduces inventory. Timeconsuming tasks are simplified through determining optimum source of supply, analyzing andcomparing vendor pricing, issuing purchase orders, managing the authorization for purchaserequisitions, processing invoices for payment and recording the same. The efficient supply chain atNestle requires all stock planning and operational activities to be integrated into a uniformbusiness-process flow.At the…
Samson is trying to solve the inventory needs for his fidget spinner business. He is in talks with two manufacturing businesses that can solve his problems. He is debating with himself if he should choose one or the other for his business. What role of Operations Management is Samson embodying in this scenario? (A) Storage and Inventory System (B Materials and Requisition Evaluation of Suppliers D Quality Control Management
To illustrate these different approaches to Production Planning, identify to most appropriate Production Planning and Manufacturing approach the following industrial scenarios A company that manufactures tinned custard with predicted sales volumes of 6 million tins per year
UPVOTE WILL BE GIVEN! PLEASE ANSWER IN TYPEWRITTEN. ANSWER WHAT IS BEING ASKED.

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS