ENEROW Corp. Is capable of turning out fifteen (15) completed units every 30 seconds. The plant normally operates five days a week on a two eight-hour shift. Each year, the factory is closed twelve (12) working days for holidays. Machinery is idle 750 hours for cleaning, oiling and maintenance. Normal sales averages 110,000 units a year over a five-year period. The expected sales volume for the year is 112,500 units. The fixed cost of operating the plant amounted to P385,000 per year. Compute the fixed unit costs under Practical capacity.
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- The Patience Corporation operates six days a week (Monday – Saturday) on a two-eight hourshifts. The plant which can complete ten (10) units per hour is closed twelve working days eachyear for holidays, machines are repaired, oiled and cleaned for about 616 hours during the period.Normal sales demand for its products averages 40,000 units a year over a five-year period. Theexpected sales volume for the year is 35,000 units. The fixed costs amount to P210,000 per year. REQUIRED:1. Determine the base capacity (in labor hours) for each of the following: (a) maximumcapacity; (b) practical capacity; (c) normal capacity; (d) expected actual capacityThe Patience Corporation operates six days a week (Monday – Saturday) on a two-eight hourshifts. The plant which can complete ten (10) units per hour is closed twelve working days eachyear for holidays, machines are repaired, oiled and cleaned for about 616 hours during the period.Normal sales demand for its products averages 40,000 units a year over a five-year period. Theexpected sales volume for the year is 35,000 units. The fixed costs amount to P210,000 per year. REQUIRED:A. Compute the fixed costs per hour under each of the four capacities B. Compute the idle capacity costs under each of the four capacities if the plant operates at3,400 hours.HIRAP corp. is capable of turning out 15 completed units evry 30 sec. The plant normally operates 5 days a week on two eight hour shift. each year the factory is closed 12 working days holiday. machinery is idle 750 hours for cleaning, oiling and maintenance. Normal sales averages 110,000 units a year over a five year period. the expected sales volume for the year is 112,500 units. the fixed cost of operating the plant amounted to 385,000 per year. a. compute the idle capacity cost under normal capacity if the plant operated at 3,400 hours/ b. compute the fixed unit cost under practical capacity
- Liberty Celebrations, Inc. manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60. and the cost to initiate a production run is $50. There are no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty Celebrations has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. (Note: Setup cost = Order cost) The number of production runs per year of the flag displays that would minimize the sum of carrying costs and set-up costs for the coming year is Select one: a. 30 b. 40 C. 20 d. 50 OO O OHickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. 1 2 3 4 5 76 79 82 82 55 Year Forecast demand Currently the manufacturer has eight machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 25 minutes to produce. a. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units/year b. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity. Round your answers to the nearest whole number. Year Extra capacity needed (units) c. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. Year Additional machines needed 1 1 2 2 3 3 4…Crawford Steel Corp. buys inventory of 40,000 units annually. The purchase price per unit is $3.00 and delivery time takes 2 weeks after the order is placed. The ordering cost is $40 per order. The storing and insurance cost of the inventory per quarter is 20 percent of the purchase price. Based on the sales records, it normally maintains its safety stock of 4,500 units. Order should be placed in 100 units and 50 weeks is in a year. Calculate: the economic order quantity. the total cost of holding inventory. the inventory level should reorder be made. the number of orders that will be placed annually.
- Ultravision Inc. anticipates sales of $460,000 from January through April. Materials will represent 50 percent of sales, and because of level production, material purchases will be equal for each month during the four months of January, February, March, and April. Materials are paid for one month after the month purchased. Materials purchased in December of last year were $42,000 (half of $84,000 in sales). Labor costs for each of the four months are slightly different due to a provision in the labor contract in which bonuses are paid in February and April. The labor figures are: January $32,000 February 35,000 March 32,000 April 37,000 Fixed overhead is $28,000 per month. Prepare a schedule of cash payments for January through April. (Assume the $460,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $460,000 / 4.)Ultravision Limited anticipates sales of $430,000 from January through April. Materials will represent 60 percent of sales and because of level production, material purchases will be equal for each month during these four months. Materials are paid for one month after the month purchased. Materials purchased in December of last year were $39,000 (half of $78,000 in sales). Labour costs for each of the four months are slightly different due to a provision in the labour contract in which bonuses are paid in February and April. Fixed overhead is $25,000 monthly. The labour figures are: January $29,000 February 32,000 March 29,000 April 34,000 Prepare a schedule of cash payments for January through April. Ultravision Limited Cash Payment Schedule Purchases Payment to material purchases Labour Fixed overhead Total cash payments December January February March April $ $ $ $ $ $ $ $ $Shredder Manufacturing has the following projected unit sales (at $18 per unit) for four months of operations: Month Unit Sales January 60,000 February 72,000 March 76,800 April 84,000 Twenty-five percent of the customers are expected to pay in the month of sale and take a 3 percent discount; 70 percent of the customers are expected to pay in the month following sale. The remaining 5 percent will never pay. It takes two pounds of raw material (costing $0.75 per pound) to produce a unit of product. In January, no raw material is in beginning inventories, but management wants to end each month with enough material for 20 percent of the next month’s production. (April’s production is assumed to be 81,600 units.) Shredder Manufacturing pays for 60 percent of its material purchases in the month of purchase and 40 percent in the following month. Each unit of product requires 0.5 hours of labor time. Labor is paid $15 per hour and is paid in the same month as worked. Overhead is…
- Shredder Manufacturing has the following projected unit sales (at $18 per unit) for four months of operations: Month Unit Sales January 60,000 February 72,000 March 76,800 April 84,000 Twenty-five percent of the customers are expected to pay in the month of sale and take a 3 percent discount; 70 percent of the customers are expected to pay in the month following sale. The remaining 5 percent will never pay. It takes two pounds of raw material (costing $0.75 per pound) to produce a unit of product. In January, no raw material is in beginning inventories, but management wants to end each month with enough material for 20 percent of the next month’s production. (April’s production is assumed to be 81,600 units.) Shredder Manufacturing pays for 60 percent of its material purchases in the month of purchase and 40 percent in the following month. Each unit of product requires 0.5 hours of labor time. Labor is paid $15 per hour and is paid in the same month as worked. Overhead is…Shredder Manufacturing has the following projected unit sales (at $18 per unit) for four months of operations: Month Unit Sales January 60,000 February 72,000 March 76,800 April 84,000 Twenty-five percent of the customers are expected to pay in the month of sale and take a 3 percent discount; 70 percent of the customers are expected to pay in the month following sale. The remaining 5 percent will never pay. It takes two pounds of raw material (costing $0.75 per pound) to produce a unit of product. In January, no raw material is in beginning inventories, but management wants to end each month with enough material for 20 percent of the next month’s production. (April’s production is assumed to be 81,600 units.) Shredder Manufacturing pays for 60 percent of its material purchases in the month of purchase and 40 percent in the following month. Each unit of product requires 0.5 hours of labor time. Labor is paid $15 per hour and is paid in the same month as worked. Overhead is…A plastic manufacturing company that makes four major products seeks to expand its operations in the coming year. At the beginning of the financial year, the company must decide on which of four new machines A, B, or C to purchase to be able to meet total annual demand. Each machine operates 14 hours a day, 360 days a year. Machine A costs GH¢43,000, machine B costs GH¢37,500 and machine C costs GH¢75,000. The following product forecasts and processing times have been projected: Demand, units/year Processing times per Unit (Minutes) Product Machine A Machine B Machine CPenholders 16,000 5 3 6Bowls 14,000 4 3 5Cups 6,000 6 5 7Carrier Bags 24,000 3…