Management must increase production to meet the projected demand of the OEM. KCC wishes to accomplish...

 

 

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Management must increase production to meet the projected demand of the OEM. KCC wishes to accomplish this without additional investments in manufacturing equipment. a. Calculate the required number of overtime hours per week and per day. Assume a 50- week year. b. Calculate the incremental cost of producing a chassis. Assume overtime is paid at 150% of labor cost of $50 per hour and that annual deprecation will remain at 2015 levels. See Table 4 for additional relevant information. Production Increase (12.5%) Production capacity Total Expected Capacity Number of Line Workers Number of Weeks/year Rate of Pay Direct Labor Number of hours/week Overtime hours/week Number of hours/day Overtime hours/day 33750 13.33 50*50*4 * 3750 30000 33750 4 50 $ 50.00 13.33 44.99 4.99 9.00 1.00 449887.5 10000 44.98875 Management must increase production to meet the projected demand of the OEM. KCC wishes to accomplish this without additional investments in manufacturing equipment. a. Calculate the required number of overtime hours per week and per day. Assume a 50- week year. b. Calculate the incremental cost of producing a chassis. Assume overtime is paid at 150% of labor cost of $50 per hour and that annual deprecation will remain at 2015 levels. See Table 4 for additional relevant information. Production Increase (12.5%) Production capacity Total Expected Capacity Number of Line Workers Number of Weeks/year Rate of Pay Direct Labor Number of hours/week Overtime hours/week Number of hours/day Overtime hours/day 33750 13.33 50*50*4 * 3750 30000 33750 4 50 $ 50.00 13.33 44.99 4.99 9.00 1.00 449887.5 10000 44.98875

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based on the table given data is prepared below Production Incresase 125 3... View the full answer