Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost Annual holding cost Daily production Annual usage Lead time Safety stock $30 $120 per subassembly 25 subassemblies 4,000 (50 weeks x 5 days each x daily usage of 16 subassemblies) 12 days 4 days' production

Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost Annual holding cost Daily production Annual usage Lead time Safety stock $30 $120 per subassembly 25 subassemblies 4,000 (50 weeks x 5 days each x daily usage of 16 subassemblies) 12 days 4 days' production

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Resource Supply and Usage, Special Order, Relevancy Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $22,100 and is capable of processing as many as 6,150 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,150 orders per year. The cost of each PC system is $1,300 per year. In addition to the salaries, Elliott spends $26,568 for forms, postage, and other supplies (assuming 24,600 purchase orders are processed). During the year, 24,000 orders were processed. Required: 1. Which of the resources associated with purchasing can be classified as flexible resources? Forms, Postage and Supplies Which of the resources associated with purchasing can be classified as committed resources? PC system and clerks 2. Compute the total activity availability, and break this into activity usage and unused activity. Activity availability: purchase orders…
Resource Supply and Usage, Special Order, Relevancy Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $22,900 and is capable of processing as many as 6,950 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,950 orders per year. The cost of each PC system is $1,300 per year. In addition to the salaries, Elliott spends $30,024 for forms, postage, and other supplies (assuming 27,800 purchase orders are processed). During the year, 27,200 orders were processed Required: 1. Which of the resources associated with purchasing can be classified as flexible resources? Which of the resources associated with purchasing can be classified as committed resources? 2. Compute the total activity availability, and break this into activity usage and unused activity. Activity availability: purchase orders Activity usage: purchase orders Unused activity: purchase…
engageNOWv2 |Online teachin x 2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro... to 田 Accepting Business at a Special Price Power Serve Company expects to operate at 90% of productive capacity during May. The total manufacturing costs for May for the production of 35,100 batteries are budgeted as follows: Direct materials $334,200 Direct labor 122,900 Variable factory overhead 34,300 Fixed factory overhead 69,000 Total manufacturing costs $560,400 The cor pany has an opportunity to submit a bid for 2,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses. What is the unit cost below which Power Serve Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit
CengageNOWv2 | Online teachin x + v.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress... A firm operated at 80% of capacity for the past year, during which fixed costs were $194,000, variable costs were 63% of sales, and sales were $1,015,000. Income from operations was Oa. 5145,240 Ob. 5639,450 Oc. 5181,550 Od. 5375,550 8:14 5/2/20 ▬▬ غال الشات لا O
CARNING SYSTEM (ACADEMI entory Management - Spring21 Time left 1:39:43 XYZ Company is specialized in mangoes distribution in the city of Muscat. Sales are 400 boxes (unit) per month. It costs. OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities ion purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the best decision that minimizes the total annual inventory cost is ut of O a 200 units. Total cost=27,240 O b. 500 units. Total cost = 20.171 O c. 450 units. Total cost = 23,500 O d. Noneis correct O e. 185 units, Total cost= 30,649 NEXT PAGE EVIOUS PAGE
Basic EOQ Model Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. What is Item X's average inventory level? * None of the above O 223 units O 48 units O 40 units ООО
Pls answer the all questions with solutions Duo Corporation operates its factory 300 days per year. Its annual consumption of Material Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. 1. What is the order point for Material Y? a. 10,000 gallons b. 38,000 gallons c. 48,000 gallons d. 58,000 gallons 2. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is P0.25, what is the total annual carrying cost for Material Y? a. P3,750 b. P7,500 c. P6,250 d. P10,000 3. A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year and the ordering costs are P100. The company uses an order quantity of 500 units. If the company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the order point? a. 250 units b. 1,000 units c. 500 units d. 2,000 units
Assume Intervale Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge a flat fee of $13,000 per month, plus $3 per passenger reservation. What is the total reservation cost if 200,000 passengers take the trip next month? a. $613,000 b. $3.07 c. $600,000 d. $13,000
ezto.mheducation.com/ext/map/index.html?_con=con&extern -30 d 1 ok $ int a Print 0 eferences 2 Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 159,000 kilometers during a year, the average operating cost is 12.7 cents per kilometer. If a truck is driven only 106,000 kilometers during a year, the average operating cost increases to 15.8 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a +bX. 3. If a truck were driven 132,000 kilometers during a year, what total operating cost would you expect to be incurred? Mc Graw Hill (@ 12 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Variable cost Fixed cost Using the high-low method, estimate the variable operating cost per…