BU111 Lecture 3: Session 13 Solutions
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Dl hours = 7,500 valves 0. 38 dl hours per valve = 2,850. Machine run hours = 7,500 valves 0. 5 machine hours per valve = 3,750. Machine setup hours and labor setup hours (from case) = 100 (= 5 20) Receiving and production hours = 1. 25 20 production runs = 25. Packaging and shipping hours = (40 shipments 50/60) + (7,500 valves 8/60) = 1,033. Machine setups (from case) = = 2,700 (= 225 12) Labor setup hours (from case) = = 2,700 (= 225 12) Receiving and production hours = 225 1. 25 = 281. Packaging and shipping hours = (200 50/60) + (4,000 8/60) = 700. Let"s assign the costs of these various resources/departments to the flow controller line: **machine setup unused capacity is included with machine expenses unused capacity. Using the capacity rates and unused capacity hours computed in part (b), the cost of unused capacity is as follows.
