Question: Maintaining a clean working environment is important to Penny Candy, an industrial parts manufacturer. Cleaning the plant is the responsibility of the maintenance department. The

 Maintaining a clean working environment is important to Penny Candy, anindustrial parts manufacturer. Cleaning the plant is the responsibility of the maintenancedepartment. The 50,000 square foot plant is thoroughly cleaned from four toeight times a month depending on the level and stage of production.

Maintaining a clean working environment is important to Penny Candy, an industrial parts manufacturer. Cleaning the plant is the responsibility of the maintenance department. The 50,000 square foot plant is thoroughly cleaned from four to eight times a month depending on the level and stage of production. For the most recent month, March, the plant was cleaned four times. The production schedule for the next quarter (April through June) indicates that the plant will need to be cleaned five, six, and eight times respectively. Two of the resources needed to clean the plant are labor and cleaning supplies. The cost driver for both resources is number of times the plant is cleaned. Plant cleaning laborers are full-time employees who are paid the same wages regardless of the number of times the plant is cleaned. Cleaning supplies is a variable cost. The March cost of labor was $30,000 and cleaning supplies used cost $4,000. Read the reauirements. Requirement 1. Prepare a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per cleaning changes in response to the number of times the plant is cleaned. What is the predicted total cost of plant cleaning for the next quarter? Begin by preparing a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per cleaning changes in response to the number of times the plant is cleaned. (Do not round until the final answer for the cost per cleaning. Then round to the nearest whole dollar.) What is the predicted total cost of plant cleaning for the next quarter? Requirement 2. Suppose Penny Candy can hire an outside cleaning company to clean the plant as needed. The charge rate for cleaning is $5,700 per plant cleaning. If the outside cleaning company is hired, Penny Candy can lay off the workers who are now cleaning the plant and will spend nothing for cleaning supplies. Will Penny Candy save money with the outside cleaning company over the next quarter? Prepare a schedule that supports your answer. Begin by preparing a schedule showing the cost of outsourcing the plant cleaning each month and in total for the next quarter and whether those costs result in a cost savings or excess cost to Penny Candy. (Use a minus sign or parentheses to show an excess cost amount.)

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