EBK OPERATIONS MANAGEMENT
11th Edition
ISBN: 8220103630726
Author: RENDER
Publisher: PEARSON
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Chapter 10, Problem 4CS
Summary Introduction
Case summary:
Person K is the vice-president of operations at Company J, which received a request for quote of supplying 400 units per week. Employee must be permitted to perform the task for 17 times. The actual times observed were given below:
| Number | Actual time (minutes) |
| 1 | 2.05 |
| 2 | 1.92 |
| 3 | 2.01 |
| 4 | 1.89 |
| 5 | 1.77 |
| 6 | 1.8 |
| 7 | 1.86 |
| 8 | 1.83 |
| 9 | 1.93 |
| 10 | 1.96 |
| 11 | 1.95 |
| 12 | 2.05 |
| 13 | 1.79 |
| 14 | 1.82 |
| 15 | 1.85 |
| 16 | 1.85 |
| 17 | 1.99 |
Performance rating is 115%, fatigue allowance is given as 8%, personal allowance is 6%, and delay allowance is 2%. Workday hour is 7.5 hours and the operators would be paid $12.50 per hour for 8 hours.
To determine: Thecost per unit for the task in direct labor cost.
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Question 1- Week 31
Ola Ltd, which uses a job costing system, had two jobs in process at the start of the year: Job L1
($68,000) and Job L2 ($30 000). The following information is available:
i) The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead
and machine activity for the year were anticipated to be $1,000,000 and 25,000 hours,
respectively.
ii) The company worked on three jobs during the first quarter (i.e. from 1 January to 31 March).
Direct materials used, direct labour incurred and machine hours consumed were as shown in the
following table:
Job numbers
Direct material
Direct labour
Machine hours
L1
$15,000
$30,000
900
L2
33,000
1,600
L3
45,000
65,000
2,000
ii) Manufacturing overhead incurred during the first quarter was $215,000.
iv) Ola Ltd completed Job L1 and Job L2 during the first quarter. Job L2 was sold on credit, producing
a profit of $30,000 for the company.
Required:
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Chapter 10 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - Prob. 11DQCh. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - Prob. 14DQCh. 10 - Prob. 1PCh. 10 - Draw an activity chart for a machine operator with...Ch. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - Prob. 18PCh. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - Prob. 34PCh. 10 - Prob. 35PCh. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 38PCh. 10 - Prob. 1CSCh. 10 - Prob. 2CSCh. 10 - Prob. 3CSCh. 10 - Prob. 4CSCh. 10 - Prob. 1VCCh. 10 - Prob. 2VCCh. 10 - Prob. 3VCCh. 10 - Prob. 4VC
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