Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 5.S, Problem 7DQ
Summary Introduction

To determine: The reason why sustainable business is more important.

Introduction: Sustainable business is the buzzword in the present business environment due to the increased awareness and need for eco-friendly surroundings.

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1. William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics:  Demand D = 19,500 units / year Ordering cost S = $25 / order Holding Cost H = $4 / unit / year a) Calculate the EOQ for the workbooks b) What are the annual holding costs for the workbooks? c) What are the annual ordering costs? 2. What is the purpose of the ABC classification system? 3. What is "safety stock"? What does safety stock provide safety against? Explain your answer   Reply
Sammy's Soldier, manufactures paints. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 2017 are: Work in process, beginning inventory, 30% converted.............. 200 units Units started during February............................................................... 800 units Work in process, ending inventory..................................................... 240 units Costs for Department A for February 2017 are: Work in process, beginning inventory: Direct materials.................................................. $150,000 Conversion costs............................................................................................................................. $210,000 Direct materials costs added during…
Consider the following data collected for Albo's Rentals:                                                                   Direct Materials        Direct Manufacturing Labor Cost incurred Actual inputs x Actual prices                                    $210,000                       $95,000 Actual inputs x standard prices                                  214,000                         88,000 Standard inputs allowed for actual output x standard prices                                220,000                         85,000 Required: Compute the price and efficiency variances for direct materials: Question 17Answer a. Price $4000 F; Efficiency $10000 U b. Price $5000 F; Efficiency $5000 F c. Price $4000 F; Efficiency $6000 F d. Price $10000 U; Efficiency $4000 F
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