A company has continuous manufacturing process involving an output of 6 tonnes per hour valued at...
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A company has continuous manufacturing process involving an output of 6 tonnes per hour valued at 70 per tonne. Process wages cost 60 per hour and raw material, 35 per tonne of product. Regular maintenance works out to *750 per week. The company is experiencing breakdown due to mechanical reason averaging 25 hours a week, costing 7,500 to repair. It is estimated that these breakdown can be reduced or eliminated it additional maintenance on the following scale were undertaken:- Breakdown per week (hours) Maintenance Cost (7) Repair Costs (*) Process labour during stoppages can be used elsewhere upto 10 hours per week. Required (1) (ii) 0 23,000 0 5 10 13,000 6,500 2,500 3,000 15 3,000 5,000 20 1,500 6,500 Present, in tabular form, the optimum amount of maintenance to be undertaken each week. What is the additional revenue that will be resulting from the optimal level, compared with the present situation? A company has continuous manufacturing process involving an output of 6 tonnes per hour valued at 70 per tonne. Process wages cost 60 per hour and raw material, 35 per tonne of product. Regular maintenance works out to *750 per week. The company is experiencing breakdown due to mechanical reason averaging 25 hours a week, costing 7,500 to repair. It is estimated that these breakdown can be reduced or eliminated it additional maintenance on the following scale were undertaken:- Breakdown per week (hours) Maintenance Cost (7) Repair Costs (*) Process labour during stoppages can be used elsewhere upto 10 hours per week. Required (1) (ii) 0 23,000 0 5 10 13,000 6,500 2,500 3,000 15 3,000 5,000 20 1,500 6,500 Present, in tabular form, the optimum amount of maintenance to be undertaken each week. What is the additional revenue that will be resulting from the optimal level, compared with the present situation?
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Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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