Reference no: EM13607655

The total monthly costs of the board department ( equpment depreciation, maintenance, direct labor, supervision, and engineering support) are assigned to the phone assembly departments based on an hourly rate. The board department's total monthly costs are divided by the no. of hrs. of capacity in the month (e.g. if a particular month has 22 working days, this is equivalent to 352 hrs. or 22 days x 2 shifts x 8 hrs per shift) to arrive at a charge per hour. togive the phone assembly departments incentive tohave their kits (board and chips) delivered to the board dept in a timely manner, the phone assembly department is charged for the time from when the last job (a batch of boards aseembled for a phone assembly department) was finished by the board department until the time when the next job is finished, for example suppose phone assembly department A's phones were finished at 9:00 AM, and that department B delivered its kits at 1:00 PM and they were completed at 7:00 PM the same day. Department B would be charged for 10 hours of the board department's costs even though board department was idle for 4 hours of the 10 hours. When first installed the board department was expected to be operating at full capacity 2 shifts per day, six days a week. But due to increased competition and outsourcing of some models the board department is now operating at about 70 percent of ythe initial planned capacity.

If you manage the phone assemly department, when during the month wold you tend to request that your phone circuit boards be assembled by the board department Explain why?