What is the total production that the company could make

Assignment Help Accounting Basics
Reference no: EM132047355

Question - D Co. makes men's work shirts in two divisions: cutting and assembly. The Cutting Department is highly automated and the Production Department uses manual labour to sew the shirts. The Production Department is limited by the number of labour- hours available. The company has had to slow down the cutting process so that the sewers do not become overwhelmed by the amount of cut fabric entering the Production Department. Further, demand has increased to 10,000 shirts per month and management is considering adding another sewer to the Production Department or having the existing sewers work overtime 1.5 hours per day at an overtime rate of one and half times their regular pay. The cost of each sewer is $12 per hour, averaging 8 hours per day and 20 days per month.

Currently, the company has 5 sewers and makes 10 shirts per day.

Answer the following question. A detailed calculations is required

a. What is the total production that the company could make in a month if it hired a new sewer?

b. What is the total production that the company could make in a month if it had the staff work an additional 1.5 hours per day?

c. What is the overall cost difference between hiring a new sewer and having employees work extra time? Should the company hire a new sewer or pay existing sewers overtime to provide the capacity needed?

d. What other factors would need to be considered when deciding which approach to take?

Reference no: EM132047355

Questions Cloud

How do you take advantage of this opportunity : How do you take advantage of this opportunity ? explain
Common stocks returned an average : Over a 20-year period an investment of $1,000 in common stocks returned an average of 11% in nominal terms and 4% in real terms.
Calculate total equity reported in xyz company balance sheet : Calculate the total equity reported in XYZ Company's balance sheet at December 31, 2016 after the appropriate adjusting entries have been recorded and posted
Operations manager for large manufacturer : Brad Shin is an operations manager for a large manufacturer.
What is the total production that the company could make : Currently, the company has 5 sewers and makes 10 shirts per day. What is the total production that the company could make in a month if it hired a new sewer
What is an alternative to using sampling in an audit : What is an alternative to using sampling in an audit? When sampling is used, what are the two sampling risks associated with substantive tests
Why you are drawn to your chosen age group : Add more details to your questionnaire so the interview is structured to help you gain the most from the experience of the professional.
Should silven industries make or buy the tubes : Should Silven Industries make or buy the tubes? What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes?
Compute cocoi branch profits tax : Compute Cocoi's branch profits tax, and determine its branch interest withholding tax obligations. Assume that Cocoi does not reside in a treaty country

Reviews

Write a Review

Accounting Basics Questions & Answers

  Unit 6 gaap application-conceptual framework of accounting

unit 6 gaap application-conceptual framework of accounting the conceptual framework allows for the systematic

  Forward contract as a fair value hedge of a foreign currency

Assuming that Budvar designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions.

  Prepare partial balance sheet in regard to lease for howard

Prepare a partial balance sheet in regard to the lease for Howard's for December 31, 2010. The company uses the change in present value approach to classify the capital lease obligation between current and noncurrent.

  What are the main objectives of comparative analysis why

what are the main objectives of comparative analysis? why is it important for external users of financial statements to

  To promote better management control of business centers

to promote better management control of business centers financial responsibilities are assigned to managers. there are

  What do you understand by archival research

What do you understand by Archival Research? Explain Quasi-experimental research. What do you understand by Cross-sectional data and Time series data?

  Compute the amount of manufacturing overhead applied during

for eckstein company the predetermined overhead rate is 140 of direct labor cost. during the month eckstein incurred

  Question on securities and exchange commission

What is the Securities and Exchange Commission? How does it affect financial decision-making? What constraints might it put on the company?

  Cactus construction sells 1000000 of 8 bonds on january 1

cactus construction sells 1000000 of 8 bonds on january 1 20xx. the bonds are unsecured but registered to the name of

  If management desired the smallest depreciation possible

assume that a company buys land with a building on it for 1500000. at the time of purchase the company planned to tear

  Preparing a budget is a waste of time

Preparing a budget is a waste of time. The strategic plan is what we work to accomplish. How would you respond to this comment

  Gerard has a nltcg of 20000 and a nstcl of 30000 what is

1.on september 10 2010 an investor purchased 1000 shares of melon corporation for 10000. on july 2 2011 the stock

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