Question: Consider a particular Boeing plant. Maintaining a clean working environment is important to Boeing. Cleaning the plant is the responsibility of the maintenance department. Two

 Consider a particular Boeing plant. Maintaining a clean working environment is

Consider a particular Boeing plant. Maintaining a clean working environment is important to Boeing. Cleaning the plant is the responsibility of the maintenance department. Two of the resources needed to clean the plant are labor and cleaning supplies. The cost driver for both resources is square feet cleaned. Plant cleaning laborers are paid the same wages regardless o the number of times the plant is cleaned. Cleaning supplies is a variable cost. The 25,000 squar foot plant is thoroughly cleaned from four to six times a month depending on the level and stage of production. For the most recent month, March, the plant was cleaned four times. The March cost of labor was $24,000 and cleaning supplies used cost $5,000. The production schedule for the next quarter (April through June) indicates that the plant will need to be cleaned 5, 6, and 8 times respectively 1. Prepare a table that shows how labor cost, cleaning supplies cost, total cost, and total cost pe square feet cleaned changes in response to the square feet cleaned. What is the predicted total cost of plant cleaning for the next quarter? 2. Suppose Boeing can hire an outside cleaning company to clean the plant as needed. The charge rate for cleaning is $5,900 per plant cleaning. If the outside cleaning company is hired, Boeing can lay off the workers who are now cleaning the plant and will spend nothing for cleaning supplies. Will Boeing save money with the outside cleaning company over the next quarter? Prepa re a schedule that supports your

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