Using the Hungarian method, determine the optimal assignment of the workers that willminimize the cost (Use manual process) 3. The Fix-it Shop has just received four new repair projects that must be repaired quickly, i.e.,project 1, project 2, project 3, and project 4. Four workers namely Arun, Barun, Chandan, and Dibyawith different talents will be able to do the job. Arun, Barun, Chandan, and Dibya can be assigned toany of these projects. It is known that every project will comprise only one worker. Also, one workerwill work in only one project and will not change the project after assignment. The wages charged bythe workers in different projects are given below in the following tableProjectsWorkersProject 1Project 2Project 3Project 4Arun$1$4$6$3Barun$9$7$10$9Chandan$4$5$1$7Dibya$8$7$8$5Now, Fix-it Shop wants to complete all of these projects at minimum cost. Based on theinformation given above, answer the following questions. Also, clearly write down each of thesteps.

Hungarian Method is a technique in cost accounting to find the optimum solution of cost allocation…

Answered: Using the Hungarian method, determine…

Using the Hungarian method, determine the optimal assignment of the workers that will minimize the cost (Use manual process)

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Using the Hungarian method, determine the optimal assignment of the workers that will
minimize the cost (Use manual process)

3. The Fix-it Shop has just received four new repair projects that must be repaired quickly, i.e.,
project 1, project 2, project 3, and project 4. Four workers namely Arun, Barun, Chandan, and Dibya
with different talents will be able to do the job. Arun, Barun, Chandan, and Dibya can be assigned to
any of these projects. It is known that every project will comprise only one worker. Also, one worker
will work in only one project and will not change the project after assignment. The wages charged by
the workers in different projects are given below in the following table
Projects
Workers
Project 1
Project 2
Project 3
Project 4
Arun
$1
$4
$6
$3
Barun
$9
$7
$10
$9
Chandan
$4
$5
$1
$7
Dibya
$8
$7
$8
$5
Now, Fix-it Shop wants to complete all of these projects at minimum cost. Based on the
information given above, answer the following questions. Also, clearly write down each of the
steps.

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