Calzado Company produces leather shoes in batches. The shoes are produced in one plant located on...
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Calzado Company produces leather shoes in batches. The shoes are produced in one plant located on 20 acres. The plant operates two shifts, five days per week. Each time a batch is produced, just-in-time suppliers deliver materials to the plant. When the ma- terials arrive, a worker checks the quantity and type of materials with the bill of mate- rials for the batch. The worker then makes an entry at a PC terminal near the point of delivery acknowledging reccipt of the material. An accounts payable clerk reviews all deliveries at the end of each day and then prints and mails checks the same day mate- rials are reccived. Prior to producing a batch, the equipment must be configured to re- flect style and size features. Once configured, the batch is produced passing through three operations: cutting, sewing, and attaching buckles and other related parts such as heels. At the end of the production process, a sample of shoes is inspected to ensure the right level of quality. After inspection, the batch is divided into lots based on the customer orders for the shoes. The lots are packaged in boxes and then transferred to a staging area to await shipment. After a short wait (usually within two hours), the lots are loaded onto trucks and delivered to customers (retailers). Within the same plant, the company also has a team of design engineers who re- spond to customer feedback on style and comfort issues. This department modifies Part 1 Foundation Concepts existing designs, develops new shoe designs, builds prototypes, and test markets the prototypes before releasing the designs for full-scale production. Required: 1. Identify Calzado's processes and their associated activities. 2. Classify cach activity within each process as unit-level, batch-level, product-level, or facility-level. Calzado Company produces leather shoes in batches. The shoes are produced in one plant located on 20 acres. The plant operates two shifts, five days per week. Each time a batch is produced, just-in-time suppliers deliver materials to the plant. When the ma- terials arrive, a worker checks the quantity and type of materials with the bill of mate- rials for the batch. The worker then makes an entry at a PC terminal near the point of delivery acknowledging reccipt of the material. An accounts payable clerk reviews all deliveries at the end of each day and then prints and mails checks the same day mate- rials are reccived. Prior to producing a batch, the equipment must be configured to re- flect style and size features. Once configured, the batch is produced passing through three operations: cutting, sewing, and attaching buckles and other related parts such as heels. At the end of the production process, a sample of shoes is inspected to ensure the right level of quality. After inspection, the batch is divided into lots based on the customer orders for the shoes. The lots are packaged in boxes and then transferred to a staging area to await shipment. After a short wait (usually within two hours), the lots are loaded onto trucks and delivered to customers (retailers). Within the same plant, the company also has a team of design engineers who re- spond to customer feedback on style and comfort issues. This department modifies Part 1 Foundation Concepts existing designs, develops new shoe designs, builds prototypes, and test markets the prototypes before releasing the designs for full-scale production. Required: 1. Identify Calzado's processes and their associated activities. 2. Classify cach activity within each process as unit-level, batch-level, product-level, or facility-level.
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Answer rating: 100% (QA)
Plantwide Overhead rate Overhead costs are all the costs other than direct material and direct labor that are not tied to the production Kenton 2019 Businesses use the manufacturing overhead rate to a... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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