The table below shows information on the material cost, demand and production hours for parts in a cylinder head machining plant. Five parts are to be considered for an automated FMS for the plant. The parts were initially sourced from a vendor at a purchase prices given in the table below. Because of the proposed 2 shifts, the shop will be available 440 hours /month and charged at R1000 / hour. Part type Description 2 3 4 1. Purchase price (R) / unit 6000 2500 8000 2000 3000 2. Material cost (R) 600 500 100 800 900 3. Demand / month 80 70 60 50 30 4. Hours / unit 2 4 5. Savings / unit 6. Hours / month, p 7. Savings /hour 8. Savings /month, si 9. s; / Pi Compute the missing values for savings/unit, Hours / month, Savings/hour, Savings/ month and answer the following: 1. Savings / unit for part type 1 2. Savings / unit for part type 2 3. Savings / unit for part type 3 4. Savings / unit for part type 4 5. Savings / unit for part type 5 6. s1 / p1 7. s2 / P2 3.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
The table below shows information on the material cost, demand and production hours
for parts in a cylinder head machining plant. Five parts are to be considered for an
automated FMS for the plant. The parts were initially sourced from a vendor at a
purchase prices given in the table below. Because of the proposed 2 shifts, the shop
will be available 440 hours / month and charged at R1000 / hour.
Part type
Description
1
4
5
1. Purchase price (R) / unit
6000
2500
8000
2000
3000
2. Material cost (R)
600
500
100
800
900
3. Demand / month
80
70
60
50
30
4. Hours / unit
3
4.
5. Savings / unit
6. Hours / month, p
7. Savings / hour
8. Savings / month, s
9. si / pi
Compute the missing values for savings/unit, Hours / month, Savings /hour, Savings /
month and answer the following:
1. Savings / unit for part type 1
2. Savings / unit for part type 2
3. Savings / unit for part type 3
4. Savings / unit for part type 4
5. Savings / unit for part type 5
6. s1 / p1
7. s2 / p2
2.
Transcribed Image Text:The table below shows information on the material cost, demand and production hours for parts in a cylinder head machining plant. Five parts are to be considered for an automated FMS for the plant. The parts were initially sourced from a vendor at a purchase prices given in the table below. Because of the proposed 2 shifts, the shop will be available 440 hours / month and charged at R1000 / hour. Part type Description 1 4 5 1. Purchase price (R) / unit 6000 2500 8000 2000 3000 2. Material cost (R) 600 500 100 800 900 3. Demand / month 80 70 60 50 30 4. Hours / unit 3 4. 5. Savings / unit 6. Hours / month, p 7. Savings / hour 8. Savings / month, s 9. si / pi Compute the missing values for savings/unit, Hours / month, Savings /hour, Savings / month and answer the following: 1. Savings / unit for part type 1 2. Savings / unit for part type 2 3. Savings / unit for part type 3 4. Savings / unit for part type 4 5. Savings / unit for part type 5 6. s1 / p1 7. s2 / p2 2.
Expert Solution
steps

Step by step

Solved in 4 steps with 3 images

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education