Homeland Apparel (HA) manufactures plain white and solid-colored T-shirts. Budgeted inputs and alterative dye information include...

  
 
 

Transcribed Image Text:

Homeland Apparel (HA) manufactures plain white and solid-colored T-shirts. Budgeted inputs and alterative dye information include the following: (Click the icon to view alternative dye information.) Click the icon to view the budgeted input data) Read the requirements Requirement 1. Given the preceding information, would HA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.) Begin by calculating the increase in costs from switching to the environmentally friendly dye. (Round all intermediary calculations and the amounts you input in the cells to the nearest Increase in Costs Assuming HA uses New Dye Units to dye 97,000 x Cost differential between dyes Increase in costs (from new dye) for the year Would HA be better off financially by switching to the environmentally friendly dye? Yes, HA will be better off financially by switching to the environmentally friendly dye. Requirement 2. Assume HA chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen costing. by how much will overall costs decrease at the end of 12 months? First calculate the fabric costs resulting from the Kalzen improvements, then in the next step calculate the labor costs. (Round all intermediary calculations and the amounts you inpu Fabric Labor Cost Cost Month 1 2 Month 1 Labor Cost 10 11 12 Total Now determine how much overall costs will decrease at the end of 12 months. Total fabric and labor costs before Kaizen improvements 2 3 4 5 6 7 raonc Cost 8 9 APAKE Total Now determine how much overall costs will decrease at the end of 12 months. Total fabric and labor costs before Kaizen improvements Total fabric and labor costs after Kaizen improvements Cost decrease resulting from Kaizen improvements The net cost of combining the environmentally friendly dye and the Kaizen improvements is $ The net cost of combining the environmentally friendly dye and the Kaizen improvements is Requirement 3. Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan? the fine. Therefore, HA Reduction in materials can be accomplished by Reduction in direct labor can be accomplished by be careful that combine the environmentally friendly dy ements quirement Given the preceding information, would HA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.) Assume HA chooses to be environmentally responsible regardless of cost. and it switches to the new dye. The production manager suggests trying Kaizen costing. If USA can reduce fabric and labor costs each by 1% per month, by how much will overall costs decrease at the end of 12 months? (Round to the nearest dollar for calculating cost reductions) Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan? Prin Done materials can be accomplished by - X Data table Fabric Labor Dye "For colored T-shirts only White T-shirts Colored T-shirts Price Quantity 0.50 yard per unit 0.50 DMLH per unit Cost per unit of output $ 7 per unit $14 per yard $12 per DMLH $0.50 per ounce $ 6 per unit 6 ounces per unit $ 3 per unit Budgeted sales and selling price per unit are as follows: Budgeted Sales Selling Price per Unit $ 16 per T-shirt $ 18 per T-shirt 11,000 units 97,000 units Print Done 1 Homeland Apparel (HA) manufactures plain white and solid-colored T-shirts. Budgeted inputs and alterative dye information include the following: (Click the icon to view alternative dye information.) Click the icon to view the budgeted input data) Read the requirements Requirement 1. Given the preceding information, would HA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.) Begin by calculating the increase in costs from switching to the environmentally friendly dye. (Round all intermediary calculations and the amounts you input in the cells to the nearest Increase in Costs Assuming HA uses New Dye Units to dye 97,000 x Cost differential between dyes Increase in costs (from new dye) for the year Would HA be better off financially by switching to the environmentally friendly dye? Yes, HA will be better off financially by switching to the environmentally friendly dye. Requirement 2. Assume HA chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen costing. by how much will overall costs decrease at the end of 12 months? First calculate the fabric costs resulting from the Kalzen improvements, then in the next step calculate the labor costs. (Round all intermediary calculations and the amounts you inpu Fabric Labor Cost Cost Month 1 2 Month 1 Labor Cost 10 11 12 Total Now determine how much overall costs will decrease at the end of 12 months. Total fabric and labor costs before Kaizen improvements 2 3 4 5 6 7 raonc Cost 8 9 APAKE Total Now determine how much overall costs will decrease at the end of 12 months. Total fabric and labor costs before Kaizen improvements Total fabric and labor costs after Kaizen improvements Cost decrease resulting from Kaizen improvements The net cost of combining the environmentally friendly dye and the Kaizen improvements is $ The net cost of combining the environmentally friendly dye and the Kaizen improvements is Requirement 3. Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan? the fine. Therefore, HA Reduction in materials can be accomplished by Reduction in direct labor can be accomplished by be careful that combine the environmentally friendly dy ements quirement Given the preceding information, would HA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.) Assume HA chooses to be environmentally responsible regardless of cost. and it switches to the new dye. The production manager suggests trying Kaizen costing. If USA can reduce fabric and labor costs each by 1% per month, by how much will overall costs decrease at the end of 12 months? (Round to the nearest dollar for calculating cost reductions) Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan? Prin Done materials can be accomplished by - X Data table Fabric Labor Dye "For colored T-shirts only White T-shirts Colored T-shirts Price Quantity 0.50 yard per unit 0.50 DMLH per unit Cost per unit of output $ 7 per unit $14 per yard $12 per DMLH $0.50 per ounce $ 6 per unit 6 ounces per unit $ 3 per unit Budgeted sales and selling price per unit are as follows: Budgeted Sales Selling Price per Unit $ 16 per T-shirt $ 18 per T-shirt 11,000 units 97,000 units Print Done 1

Answer rating: 100% (QA)

Yes NA will be better off financially by switching ... View the full answer