Virontrol, Inc. is a relatively new company in the environmental control industry and is experiencing tremendous...
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Virontrol, Inc. is a relatively new company in the environmental control industry and is experiencing tremendous growth in product demand. To meet customers' increasing demands, the man- agement is considering the addition of a nighttime operation production shift beginning October 1. Production takes place in three departments: Assembly, Molding, and Finishing. Standard time in the Molding Department is 10 minutes per unit produced, while the Finishing Department averages 12½ items per hour. Em- ployees in these two departments are paid $5 per hour. Two people are needed in the Assembly Department, each with a monthly salary of $850, to serve the extra shift. One foreman for each 19 workers is needed in the Molding and Finishing Departments, and 5 cleanup employees are required. Foremen are paid $1,200 per month, and each member of the cleanup crew is paid $3.50 per hour. Under normal conditions, the company schedules 20 work days per month with standard monthly production of 120,000 units. Required: A monthly labor budget for the extra shift, showing the time required in each department, the labor cost for each department and service, unit labor cost, and the number of employees required. Virontrol, Inc. is a relatively new company in the environmental control industry and is experiencing tremendous growth in product demand. To meet customers' increasing demands, the man- agement is considering the addition of a nighttime operation production shift beginning October 1. Production takes place in three departments: Assembly, Molding, and Finishing. Standard time in the Molding Department is 10 minutes per unit produced, while the Finishing Department averages 12½ items per hour. Em- ployees in these two departments are paid $5 per hour. Two people are needed in the Assembly Department, each with a monthly salary of $850, to serve the extra shift. One foreman for each 19 workers is needed in the Molding and Finishing Departments, and 5 cleanup employees are required. Foremen are paid $1,200 per month, and each member of the cleanup crew is paid $3.50 per hour. Under normal conditions, the company schedules 20 work days per month with standard monthly production of 120,000 units. Required: A monthly labor budget for the extra shift, showing the time required in each department, the labor cost for each department and service, unit labor cost, and the number of employees required.
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Time Required in Each Department Molding Department 10 minutes per unit 120000 units 1200000 minutes ... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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