Al Futain manufacturing company manufactures luxury beds for the UAE market. The Company has developed monthly forecasts
Question:
Al Futain manufacturing company manufactures luxury beds for the UAE market. The Company has developed monthly forecasts for a family of products. Data for the 6-month period from January to June and cost information are presented in tables 1and 2 below. . Use Plan 2 - by using subcontractors with a constant workforce at the lowest demand per day and calculate the Total Cost of the Plan.
Table 1
MONTH | PRODUCTION DAYS | DEMAND FORECAST | DEMAND PER DAY |
Jan | 22 | 1,065 | |
Feb | 18 | 925 | |
Mar | 21 | 1,002 | |
Apr | 24 | 1,000 | |
May | 24 | 1,264 | |
June | 22 | 1,303 |
Table 2
Cost Information | |||
Subcontracting cost per unit | 30 | $ per unit | |
Average pay rate | 14 | $ per hour (10 Working hours per day) | |
Labor hours to produce a unit | 1.6 | hours per unit | |
Note: Please write your final answer in the whole number without decimal points.
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer