SummerFun, Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate
Question:
SummerFun, Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast: Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Which plan has the lowest total cost?
a. Use regular production. Supplement using inventory, overtime, and subcontracting as needed. No backlogs allowed.
b. Use a level strategy. Use a combination of backlogs, subcontracting, and inventory to handle variations indemand.
Transcribed Image Text:
Month Mar Apr May Jun Jul Aug Sep Total Forecast 50 60 50 40 51 350 Use the following information to develop aggregate plans. Regular production cost Overtime production cost $120 per unit Regular capacity Overtime capacity Subcontracting cost Subcontracting capacity 2 units per month Holding cost $80 per unit Back-order cost Beginning inventory $20 per unit 0 units 40 units per month 8 units per month S140 per unit S10 per unit per month
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 91% (12 reviews)
a overtime subcontract no back log Mar Apr May Jun Jul Aug sep Total Forecast 50 44 55 60 50 40 51 3...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
The Bubble Company produces a variety of bottles from recycled plastic. The company has one particular machine on which it can produce either of two types of water bottles, 1-liter bottles or...
-
The Holloway Calendar Company produces a variety of printed calendars for both commercial and private use. The demand for calendars is highly seasonal, peaking in the third quarter. Current inventory...
-
The Healthwise Company produces a variety of exercise equipment. Healthwise management is very pleased with the increasing sales of its newest model of exercise bicycle. The sales during the last two...
-
True Or False Death benefits are used to compensate the deceaseds family for pain and suffering.
-
Give the diere and dienophile that would react in a Diels-Alderreaction to give each of the following products. CN
-
Suppose that all salons agree to charge $40 a haircut. How do consumer surplus and producer surplus change? What is the deadweight loss created? TABLE 1 Price (dollars per haircut) 0 10 20 30 40 50...
-
A circular metal disk with a shaft through its center rotates about a central axis as shown in Figure P29.33. The unit is placed in a uniform magnetic field of magnitude \(1.5 \mathrm{~T}\), directed...
-
Griseta Corporation was organized on January 1, 2011. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At...
-
123456 7 8 Define plant location. Define product layout and process layout. What are the methods of production? Define work study. What do you mean by method study and time study? Explain inventory...
-
Max and Annie are roommates sharing an apartment. Although they know each other well, they have respect for each others privacy. Thus, when Maxs Form 1040 was audited by the IRS, he made no mention...
-
The Oxford Company has budgeted sales revenues as follows. Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the...
-
Able Control Company, which manufactures electrical switches, uses a standard cost system and carries all inventory at standard cost. The standard factory overhead cost per switch is based on DLHs. *...
-
Phred Phortunate won his state lotto two years ago. His lotto ticket was worth $ 10 million, which was payable in 20 annual installments of $ 500,000 each. Phred paid $ 1 for the winning ticket. The...
-
Professional Research Wie Company has been operating for just 2 years, producing specialty golf equipment for women golfers. To date, the company has been able to finance its successful operations...
-
Addison Corporation has 10 million shares of ordinary shares issued and outstanding. On June 1, the board of directors voted a 60 cents per share cash dividend to shareholders of record as of June...
-
Write the analog for Eq. (14.16) for the case of multiple receptors. Interpret your result. Equation 14.16. MC, (e) MC, (e) a, MS, (e,) MS, (e) a = It (14.16)
-
Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of HK\($16\),000. At year-end,...
-
Professional Research Your client, Cascade Company, is planning to invest some of its excess cash in 5-year revenue bonds issued by the county and in the shares of one of its suppliers, Teton Co....
-
A woman was hired as the chef de cuisine at a catering company. The company had an executive chef, who supervised the kitchen manager and the chef de cuisine. On the organizational chart, the chef de...
-
Frontland Advertising creates, plans, and handles advertising campaigns in a three-state area. Recently, Frontland had to replace an inexperienced office worker in charge of bookkeeping because of...
-
In horizontal analysis, each item is expressed as a percentage of the: (a) net income amount. (b) stockholders equity amount. (c) total assets amount. (d) base-year amount.
-
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: The company is now in the process of preparing a production budget for the...
-
Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is 150 roubles per kilogram. (Siberia...
-
The production manager of Rordan Corporation has submitted the following of units to be produced by quarter for the upcoming fiscal year: Each unit requires 0.35 direct labor-hours, and direct...
-
Apple has purchased land for $500,000 for their new factory. They make a down payment of $100,000, and the remainder is financed at (AAA+10) percent compounded semi-annually with semi-annual payments...
-
Task: Sarah is a 32 year old accounting executive who recently married her partner of 6 years, Austin. Sarah and Austin have decided they would like to try for a baby. Sarah has concerns around her...
-
Suppose CORP generates $100M in revenue by selling products currently in the firm's inventory. The sales are paid in cash and have a COGS of $80M. What is the effect of these sales on CORP's NOPAT...
Study smarter with the SolutionInn App