Determine the expected loss from the process

Assignment Help Cost Accounting
Reference no: EM13876513

Taguchi Loss Function Analysis (Appendix) North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 50,000 units from South- ernstar Exploration Company for $80 per unit. North Platt can manufacture the shaft at $50 per unit. Southernstar desires the diameter of the shaft to be 1.275 cm. The diameter of the shaft must not be less than 1.25 cm, in order to fit properly inside the sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.30 cm. A defective shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the average cost of handling and shipping a replacement shaft will be approximately $70. Shown below are the diameters from a sample of 80 shafts manufactured during a trial run.


Diameter

Number of Units

 

Diameter

Number of Units

 

Diameter

Number of Units

1.232

1

1.273

6

1.292

2

1.240

2

1.274

7

1.293

1

1.250

3

1.275

18

1.294

4

1.258

2

1.276

8

1.298

2

1.262

2

1.277

5

1.300

2

1.270

3

1.280

2

1.304

1

1.272

6

1.288

2

1.320

1

Required: Set up an Excel spreadsheet that uses a Taguchi loss function to determine:

1. The expected loss from this process.

2. The diameter tolerance that should be set for the manufacture of the shaft.

Reference no: EM13876513

Questions Cloud

The controller''s staff has identified costs : Utica Manufacturing (UM) was recently acquired by MegaMachines, Inc.
Discuss the income tax implications : The taxable value of fringe benefits provided by XYZ Ltd to its employees for the current FBT year is: Cars - $32,000; input tax credits are available for GST purposes Loans - $6000; no GST has been paid External expense payments
Evaluate basic principles of hrm with enhancement : Evaluate basic principles of HRM with enhancement of critical thinking in current HRM issues and apply HRM theory into the practicality of HRM through, research and case study - What are the advantages and disadvantages of Lui Wee Int. in hiring par..
Problem regarding the axial thrust : The rope passes around a small, frictionless pulley at F and is tied to a fixed cleat at H. Assuming that the hinge at A does not exert any axial thrust, determine
Determine the expected loss from the process : Determine The expected loss from this process and the diameter tolerance that should be set for the manufacture of the shaft.
The current cost accounting system charges overhead : Cain Components manufactures and distributes various plumbing products used in homes and other buildings.
What is the net financial benefit from using the new process : What is the net financial benefit (over the next three years) from using the new process? Based on financial information, should Worrix use the new process?
What other factors does the firms manager need to consider : What other factors does the firm's manager need to consider in making the decision? Based on a relevant-cost analysis, should the firm install the new tracking system? Show calculations.
Book review- reading the bible with heart and mind : Book Review : Reading the Bible with Heart and Mind

Reviews

Write a Review

Cost Accounting Questions & Answers

  Limitations of profit-measurement approach

The arguments for using the profit measure as the all-encompassing measure of the performance of a business and the limitations of profit-measurement approach and of undue dependence on the profit measure

  Compute the value of k in the taguchi loss function

Compute the value of k in the Taguchi loss function. Calculate the estimated quality loss for each of the observed measurements.

  What amount should be reported by ruse inc

What amount should be reported by Ruse Inc. as cash provided by operating activities in the statement of cash flows

  How the advanced cost accounting focuses on the significance

The study of advanced Cost accounting focuses on the significance of analyzing and managing costs; activity-based management, process costing and cost allocation; planning and decisions making, and evaluating and managing performance.

  Journalize transaction - debit analysis

Purchased $450 of supplies on account and indicate what accounts are increased and decreased by each transaction. Debit Analysis Credit Analysis 1. 2. 3.

  What are opportunities for buying at a discount

A consultant recommends that a company hold funds for the following two reasons.

  Frieden companys contribution format income statement for

frieden companys contribution format income statement for the most recent month is given belowsales 40000 units . . . .

  Identify balance sheet accounts that kate will likely need

Identify the balance sheet accounts that Kate will likely need to record the transactions needed to open her business. Indicate whether the normal balance of each account is a debit or a credit.

  Scheme affect the companys balance sheet

How does Mr. Blowhard scheme affect the amount of income that the company would otherwise report in its financial statement and how does the scheme affect the company's balance sheet?

  Discuss how the preceding post-balance-sheet events

Discuss how the preceding post-balance-sheet events should be reflected in the 2008 financial statements - Madrasah Corporation issued its financial statements for the year ended December 31, 2008, on March 10, 2009.

  Questionpizza company purchased salt company common stock

questionpizza company purchased salt company common stock through open-market purchases as

  Fastenals cost from lost sales of current customers

What is Fastenals cost from lost sales of current customers - using a relevant cost analysis should Fastenalt accept Hank's special order?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd