12 P301 - Problem 7 Note that there are 4 questions to this problem Qs 3&4 are on page below. The owner of a small mill-working plant that builds cabinets is developing his aggregate plan for the next year. The relevant cost data and forecast for the next 4 quarters is provided below. The company currently has 20 employees and works one 8 hour shift each day with 2 paid 15 minute breaks. Assume each quarter has 65 working days, and that it currently has no units in stock. Use this information and the information from the table to answer the questions below. Costs Forecast Other Data Holding Cost/Unit/Quarter $218.50 Qtr 1 1600 Labor Hours/Unit Hiring Cost $2,500.00 Qtr 2 1300 Beginning Inventory Layoff Cost $3,000.00 Qtr 3 2200 Work days per Quarter 65 Subcontract Cost $400.00 Qtr 4 1750 Avg. Labor Cost/Hour $21.50 Overtime Labor Cost/Hour $32.25 Assume the company decided to go with a level plan using 40 employees. They also have decided to use overtime to cover any periods where production and on-hand inventory do not cover demand. Q3) What would the overtime cost be for this plan? 0 Q4) What would the total cot be for this plan? 1 Level Capacity Aggregate Plan 3 4 2200 1750 40 40 2 1300 40 1600 40 Period Forecast Workers Used Hire (Fire) Production Production - Forecast Inventory: B.I. E.I. Average Overtime Production Overtime Hours Total Cost Hiring Cost Firing Cost Reg. Output O.T. Subcontract Inventory Backorder Total Cost: Total Cost For Plan