Aggregate Planning: Given the following cost information and the aggregate plan below: Quarter Demand 1 800 2
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Question:
Aggregate Planning:
Given the following cost information and the aggregate plan below:
Quarter | Demand |
1 | 800 |
2 | 400 |
3 | 1000 |
4 | 700 |
Previous production level | 500 | units |
inventory holding cost | $24 | per unit |
hiring workers | $49 | per unit |
Laying off workers | $74 | per unit |
Subcontracting Cost | $155 | per unit |
Regular time production cost | $7575 | per unit |
Quarter | Demand | Regular time production | Ending inventory | Subcontract | Hiring | Layingoff |
0 | 500 | 0 | ||||
1 | 800 | 600 | 0 | 200 | 100 | 0 |
2 | 400 | 600 | 200 | 0 | 0 | 0 |
3 | 1000 | 600 | 0 | 200 | 0 | 0 |
4 | 700 | 600 | 0 | 100 | 0 | 0 |
Calculate the overall cost for quarters 1 to 4. Do not consider the production cost from quarter 0 and the cost of the inventory from quarter 0.
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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