Barbados Soy Products produces equipment used in the Agricultural industry. The advent of organic farming has inspired the team of designers to develop a specialized greenhouse system which utilizes hydroponic systems for farming communities. It has just completed the prototype for a new model. The information for the green house system is shown below. Direct material cost per unit $21,000 Direct labour time for the assembly of first unit in hours 120 Direct labour cost per hour Learning effect for design hours per unit Variable manufacturing overhead 50% of direct labour cost Fixed overhead cost per system $2,250 $ 70 The cumulative average design labour hours for an initial order of 25 units. Provide the details and workings in the following table. 90% (A 90% learning curve implies that b = -0.1520) The first unit is kept on display. A finished system carries a 10% mark up on variable cost. It is believed that the learning effect is valid only for the first 30 units. All units thereafter take the same time per unit as the 30th unit.

Barbados Soy Products produces equipment used in the Agricultural industry. The advent of organic farming has inspired the team of designers to develop a specialized greenhouse system which utilizes hydroponic systems for farming communities. It has just completed the prototype for a new model. The information for the green house system is shown below. Direct material cost per unit $21,000 Direct labour time for the assembly of first unit in hours 120 Direct labour cost per hour Learning effect for design hours per unit Variable manufacturing overhead 50% of direct labour cost Fixed overhead cost per system $2,250 $ 70 The cumulative average design labour hours for an initial order of 25 units. Provide the details and workings in the following table. 90% (A 90% learning curve implies that b = -0.1520) The first unit is kept on display. A finished system carries a 10% mark up on variable cost. It is believed that the learning effect is valid only for the first 30 units. All units thereafter take the same time per unit as the 30th unit.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter28: The Balanced Scorecard And Corporate Social Responsibility

Section: Chapter Questions

Problem 3MAD: Analyze CSR initiatives at Green Manufacturing Green Manufacturing is a traditional manufacturing...

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Analyze CSR initiatives at Green Manufacturing Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The companys operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities: The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect. A. Identify which CSR activities Green Manufacturing should implement. B. For each CSR activity you recommend, identify an appropriate related performance metric.
A machine shop is considering combining machining and turning centers into a single Mazak Multi-Tasking machine center. Multitasking in the machine world is the combining of processes that were traditionally processed on multiple machines onto one machine. The ultimate goal is to turn, mill, drill, tap, bore, and finish the part in a single setup. The total investment cost is RM6 million with following anticipated cost savings: Current Cost (% saved) Savings Setup $340 000 75% Scrap/Rework 63 530 80% Operators 228 000 100% Fixturing 190 000 80% Programming time 85 000 75% Floor space 40 000 80% Maintenance 50 000 70% Coolant 20 000 65% Inspection 124 926 100% Documentation 10 000 65% Expediting 30 000 80% Total Annual Savings Most machine shops typically use 20 years and assume a 25% residual value at the end of the project life. It is also very common for a learning curve to take place in operating a complex new machine. To allow for the learning curve, assume that only 60% of the…
Determining the Optimal Product Mix with One Constrained Resource Casual Essentials, Inc. manufactures two types of team shirts, the Homerun and the Goalpost, with unit contribution margins of $11 and $15, respectively. Regardless of type, each team shirts must be fed through a stitching machine to affix the appropriate team logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Homerun shirt requires 6 minutes of machine time, and each Goalpost shirt requires 30 minutes of machine time. Assume that there are no other constraints. Required: If required, round your answers to the nearest whole number. If an amount is zero, enter "0". 1. What is the contribution margin per hour of machine time for each type of team shirts? Contribution Margin Homerun $fill in the blank 1 Goalpost $fill in the blank 2 2. What is the optimal mix of team shirts? Optimal Mix Homerun fill in the blank 3 units Goalpost fill in the blank 4 units…
Woodruff Company is currently producing a snowmobile that uses five specialized parts. Engineering has proposed replacing these specialized parts with commodity parts, which will cost less and can be purchased in larger order quantities. Current activity capacity and demand (with specialized parts required) and expected activity demand (with only commodity parts required) are provided. Activities Activity Driver ActivityCapacity Current ActivityDemand Expected ActivityDemand Material usage Number of parts 200,000 200,000 200,000 Installing parts Direct labor hours 20,000 20,000 16,000 Purchasing parts Number of orders 7,600 6,498 3,990 Additionally, the following activity cost data are provided: Material usage: $11 per specialized part used; $27 per commodity part; no fixed activity cost. Installing parts: $21 per direct labor hour; no fixed activity cost. Purchasing parts: Four salaried clerks, each earning a $47,000 annual salary; each clerk is capable of processing 1,900…
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Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company's operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities: Initial Added Cost Variable Cost Variable Savings Recycle and reuse production materials $ 5,000 $0.10 per lb. of recycled material $0.15 per lb. of recycled material Add solar panels as a source of power 700,000 $ 1,000 per year $ 33,000 per year Replace assembly room light fixtures with natural light 120,000 $ 180 per month $ 220 per month The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect. a. Identify which CSR activities Green Manufacturing should…
Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company's operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities: Initial Added Cost Variable Cost Variable Savings Recycle and reuse production materials $ 5,000 $0.10 per lb. of recycled material $0.15 per lb. of recycled material Add solar panels as a source of power 700,000 $ 1,000 per year $ 33,000 per year Replace assembly room light fixtures with natural light 120,000 $ 180 per month $ 220 per month The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect. a. Identify which CSR activities Green Manufacturing should…
Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company’s operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities: Initialadded cost Variable cost Variable savings Recycle and reuse production material $5,000 $0.10 per lb. of recycled material $0.15 per lb. of recycled material Add solar panels as a source of power 700,000 $1,000 per year $33,000 per year Replace assembly room light fixtures with natural light 120,000 $180 per month $220 per month The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect. a. Determine if it is viable to recycle and use…
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Determining the Optimal Product Mix with One Constrained Resource Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $11 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. Assume that there are no other constraints. Required: If required, round your answers to the nearest whole number. If an amount is zero, enter "0". 1. What is the contribution margin per hour of machine time for each type of sweatshirt? Contribution Margin Swoop Rufus 2. What is the optimal mix of sweatshirt? Optimal Mix Swoop units Rufus units 3. What is the total contribution margin earned for the optimal mix?
Determining the Optimal Product Mix with One Constrained Resource Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $11 and $22, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,200 hours of machine time per year. Each Swoop sweatshirt requires 12 minutes of machine time, and each Rufus sweatshirt requires 27 minutes of machine time. Assume that there are no other constraints. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Required: 1. What is the contribution margin per hour of machine time for each type of sweatshirt? Do not round intermediate calculations. Round your answers to the nearest cent. Contribution…