Question: The consulting agency is working with the client on engineering plans. The client has 3 sanitation engineers that each can work 160 hours per month

The consulting agency is working with the client

The consulting agency is working with the client on engineering plans. The client has 3 sanitation engineers that each can work 160 hours per month at a rate of $40 per hour. When the client needs more than 160 hours per month from a sanitation engineer, they get overtime pay of $60 per hour. The client does not allow their sanitation engineers to work more than 240 hours in a month. The treatment facility demand for sanitation engineering hours over the next 6 months is given. Month Estimate Engineer Hours Jan. 720 Feb. 840 March 950 April 1,020 May 995 June 1,050 Total 5,575 The consulting agency has experienced sanitation engineers that work on a temporary contract with them as needed to support their client busy time periods, if needed, for $100 per hour. The client will not layoff anyone, but could however hire another sanitation engineer depending on needs. Develop an aggregate plan for the next 6-months. Compute the cost of the plan using overtime and temporary engineers. Should the client hire another engineer? Total Cost of Plan $238,500. Do not hire another engineer. Total Cost of Plan $327,100. Do not hire another engineer. Total Cost of Plan $238,500. Hire another engineer, to save $31,200. Total Cost of Plan $327,100. Hire another engineer to save $62,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

12 0146.44 The following cost data pertain to the operations of Quinonez Department Stores, Incorporated, for the month of September. Corporate headquarters building lease Cosmetics Department sales...

The consulting agency is working with the client on engineering plans. The client has 3 sanitation engineers that each can work 160 hours per month at a rate of $40 per hour. When the client needs...

the consulting agency is working with the client on engineering plans.......... The consulting agency is working with the client on engineering plans. The client has 3 sanitation engineers that each...

Exercise 5-20 : part- b.Case #3 was completed at the end of April 2013. At that time, $10,100 of direct materials had been used and 174 direct labor hours had been incurred. Of the DLHs, 72 had been...

Job costing and pricing Attorney Maria Conroe uses a job order costing system to collect costs of client engagements. Conroe is currently working on a case for Stacie Olivgra. During the first three...

CMOS Chips is hedging a 20-year, $10 million, 7% bond payable with a 20-year interest rate swap and has designated the swap as a fair value hedge. The agreement called for CMOS to receive payment...

1. a.) Using the Capital Asset Pricing Model (CAPM), calculate whether the actual historical return on the Dukes' equity portfolio has underperformed, outperformed, or matches the expected return.n...

Oriole Company's sales budget projects unit sales of part 1 9 8 2 of 1 0 , 4 0 0 units in January, 1 2 , 0 0 0 units in February, and 1 4 , 0 0 0 units in March. Each unit of part 1 9 8 2 repuires 4...

Develop a training proposal applicable to the case scenario below. This time, you need to make sure that you do research on user training and cite the resources you used in research in this report....