Reference no: EM132258501

Use the following data: Cost Data Regular time labor cost per hour $10 Overtime time labor cost per hour $15 Subcontracting cost per unit (labor only) $80 Back order cost per unit per period $20 Inventory holding cost per unit per period $10 Hiring cost per employee $500 Firing cost per employee $400 Capacity Data Beginning workforce 40 employees Beginning inventory 0 units Beginning back orders (shortages) 0 units Production standard per unit (hours) 2 hours of labor per unit Regular time available per period (hours) 160 hours per period per employee Overtime time available per period (hours) 30 hours per period per employee Number of days per period 20 days Number of working hours per day 8 hours Demand Data Period 1 3,920 Period 5 3,800 Period 2 2,480 Period 6 4,340 Period 3 2,200 Period 7 4,820 Period 4 3,280 Period 8 4,600 Suppose you are using a chase strategy without inventory and back orders (shortages). In chase strategy you have to meet the demand in every period using regular time production, overtime production and subcontracting. There are 40 workers in each period. When demand is less than the regular time production capacity, you produce only the number of units that are demanded and some of the workers may remain idle. You do not hire and fire workers. What is the total overtime cost in his plan? 3080 46,200 92,400 None of the above.