A batch of large castings is processed through a machine shop. The batch size is 20. Each raw casting costs $175. There are 22 machining operations performed on each casting at an average operation time of 0.5 hour per operation. Setup time per operation averages 5 hours. The cost rate for the machine and labor is $40 per hour. Noncooperation costs (inspection, handling between operations, etc.) average $5 per operation per part. The corresponding noncooperation time between each operation averages two working days. The shop works five 8hour days per week, 52 weeks per year. Interest rate used by the company is 25% for investing in WIP inventory, and storage cost rate is 14% of the value of the item held. Both of these rates are annual rates. Determine the following:
(a) Manufacturing lead time for the batch of castings,
(b) Total cost to the shop of each casting when it is completed, including the holding cost,
(c) Total holding cost of the batch for the time it spends in the machine shop as work-in-process.