Illustrate how you suggest ways of improving this process

Assignment Help Financial Accounting

Reference no: EM13125070

Hearthstone Appliances supplies parts for laundry and kitchen appliances. Customer orders are placed over the internet and are generally filled in one or two days using express mail services.
Angela Farnsworth, a consultant with ABA Services, has been asked to conduct an ABM Study of inventory management at Hearthstone Appliances. In this regard she has determined that the cost of filling customer’s orders in the past year consisted primarily of $300,000 of salary expenses related to five workers who pick parts from the warehouse and $450,000 of salary expenses related to six workers who pack the orders for shipment, in the past year, the company filled 150,000 orders. Based on work performed for a very large chain of auto supply stores. Angela has determined a benchmark cost of $4 per order.

Required:

A) Comment on the advisability of comparing the costs of hearthstone Appliances to those at an auto supply chain store.

B) Angela has observed the following: Workers go to a box that contains individual customer order sheets. They take the bottom order (the oldest) and go into the warehouse with a handcart and a box . They then fill the order and carry the parts to a packing station. Can you suggest ways of improving this process?

Reference no: EM13125070

Questions Cloud

What is the total cost of the building : Calculate the amount of interest that Mason should capitalize in 2013 and 2014 using the weighted-average method. (Do not round your intermediate calculations. Enter your answers in whole dollars.)

Description of convergent series : Show that if a convergent series of real numbers contains only a finite number of negative terms, then it is absolutely convergent.

Do results support researcher-s theory by hypothesis testing : Using the .05 level, do the results support the researcher's theory? (a) Use the steps of hypothesis testing, (b) sketch the distributions involved.

A reed-kellogg diagram of "the fat, slimy worms : • A Reed-kellogg diagram of "the fat, slimy worms"• A phrase structure tree (phrase marker) of "the fat, slimy worms"• A Reed-kellogg diagram of "the house with a red, tiled roof"• A phrase structure tree of "with a red, tiled roof"

Illustrate how you suggest ways of improving this process : Workers go to a box that contains individual customer order sheets. They take the bottom order (the oldest) and go into the warehouse with a handcart and a box . They then fill the order and carry the parts to a packing station. Illustrate how you..

Maximizing area and solving systems of linear equations : You have 80 yards of fencing to enclose a rectangular region. Find the dimensions of the rectangle that maximize the enclosed area. What is the maximum area?

States the actual burden of the tax : The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Which of the following states the actual burden of ..

Depreciating the equipment on a straight-line basis : At the date of transfer the land and equipment had fair values of $72,000 and $65,000, respectively. Gleason had been depreciating the equipment on a straight-line basis over ten years with no salvage value.

Would the receipts be considered dpgr : An engineering and heavy contruction contractor repairs and renovates streets, airport runways bridges and other real property that have fallen into disrepair. If the contractor does not build an entire building, is DPAD available? Would the recei..

User Account

All Pages