Reference no: EM132091743
Provide all steps
GIVEN:
- 9 workstations (each operator is responsible for three of them)
- Hourly cost of direct labor is 15$/hr
- The set up time required is 6 hrs and production time for each unit is 6 mins
- The initial coat of facility’s machines were $600,000 with 15% interest rate and with useful life of 6 years
- The working shift for operators is 8hr/day, 5days a week (50 weeks a year)
- The repair team has a crew of three working 8hr/day, 6 days a week (50 weeks)
- The machines are 15% down during the operations periods due to breakdowns
- The cost of each repair crew member is 21$/hr
- The repair team and machine have 20% factory over head
- The direct labor has 50% factory over head
- Production has 20 hrs of nonoperational time/machine
- The current order quantity is 20,000 pc
- number of operations is one
-utilization is one
ASKED:
What is the capacity of the facility (pc/week)
What is the actual output quantity of the facility (pc/week)
What is the MLT of the order (hr)
What is the hourly cost rate of a workstation ($/hr)
With 15% mark up, how much will be the customer charged for each unit of product (total raw material cost: $26750 and total tooling cost: $15600)