The machine can pack 500 units on $200 cost. Simplifies the production process Current sales are $680,000. He did some research and knows that the average price of gas in Spain is approximately 1.21 euros per liter. Go ahead and submit it to our experts to be answered. d. the fi, Jabriel Corporation uses a standard cost system in which it applies manufacturing overhead (MOH) on the basis of direct labor- hours (DLH). The company's standards call for 2 DLHs for each unit produc, Companies that produce large numbers of standardized products within a particular batch would most likely use which type of costing? XYZ Corporation operates in a market that produces a homogeneous good. D. 18 percent. Airlines b. By using overti, You would like to construct an aggregate production plan for product X341 for the next four quarters. Motor X sells for $2,500 and has an efficiency rating of 9 Amy Xia's plant is designed to produce 7,000 hammers per day but is limited to making 5,600 hammers per day because of the time needed to change equipment between styles of hammers. A standard work year is 2000 hours at the Luther Mill and it takes about an hour and a half to fill a customer order. If the level of capital is decreased: a. the total product curve shifts downward. 3. may not be able to gain the economies of scale that can be gained by a supplier that is able to pool the activity of a large number of firms Is the transition temperature of the frames above or below room temperature? According to conversations with its investment bankers, the firm will receive$60 per share from the sale of new common stock. Burning certain fuels results in solid waste such as ash, which must be stored and eventually disposed of properly. c. There is no maximum utilization. A. increasing production lowers the average cost of each unit produced B. increasing production increases the average cost of each unit produced C. decreasing production lowers the average cost of each unit produc, For the current period, Kayenta Company's manufacturing operations yield a $4,000 unfavorable price variance on its direct materials usage. Assume capital is not a fixed cost. Overhead cost is applied on the basis of standard direct labor-hours. Procuring goods and services from suppliers carries the risk of those suppliers providing the same goods and services to direct competitors, When a firm has been making goods and services in-house, and then decides to buy these goods and services from suppliers, When the firm doing the outsourcing and the supplier that will provide the outsourced goods and services are located in the same country, When the firm doing the out-sourcing and the supplier that will provide the out-sourced goods and services are located in different countries, firm only focuses on product design and outsource all other production process functions, 1. cost and efficiency The following are the common characteristics of multinational corporations: 1. There is a machine at each step of the process, and this is a machine-paced process. Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item: |a. Problem 5-1 Determine the utilization and the efficiency for each of these situations: a. a. Explain the distinction, A firm produces output y using two factors of production (inputs), labour L and capital K. The firm's production function is f(L,K) = 1 2 ln(L) + 1 2 ln(K). Long-range capacity planning should be the responsibility of: a. analysts b. middle management c. top management d. marketing management. Currently two production lines are in place for making bronze and plastic sprinklers. Browse through all study tools. Organizations that have standard products or services generally have smaller capacity cushions. 4. Although the facility can complete the entire production . Access the answers to hundreds of Capacity planning questions that are explained in a way that's easy for you to understand. A consumer would purchase electricity from a utility in their area, which would then provide the electricity through its own electricity delivery system. An adjustable-rate mortgage contract should specify what? Product B only visits machines 1 and 3. What is its expected output per week? Operations. Can you provide an example why a business might not want to pursue global production? b. One production facility will usually be favored when a. fixed costs are low. b. How easily can product use be made? The standard price for a unit of material is $2.00. Explain the criteria for aggregate capacity planning, including a diagram. Production Facilities Definition: 141 Samples | Law Insider copyright 2003-2023 Homework.Study.com. The facilities have machines and use labor that is involved in the production to ensure the optimum output. - research and development, is responsible for the acquisition of goods and services, is responsible for the transformation required by the production process, is responsible for the movement of materials in the production system, is responsible for the design of new products, determining which components and raw materials should be produced in-house and which components and raw materials should be acquired from suppliers; also called the sourcing decision, when a firm buys components and raw materials globally, - One advantages of buying is that the firm does not need to invest in the complete production process; global suppliers are selling to many companies in the same industry but in different countries, and achieve superior economies of scale and scope; sometimes global procurement is required as a result of a business practice known as offsets. 2. In a 4-week period, it actually worked 355 hours and produced 475 standard hours of work. If the standard deviation of the weighing scale is 0.02, is the process considered capable? Trade policies vary greatly from country to country and also should be considered. Suppose the firm can hire at a wage of $40 per hour and output can be sold at $10 per unit. In 2015, the hospital copy office's planned capacity for photocopying was based on 350 days per year of operation. Each machine requires two operators. This financial flexibility may prove crucial when fixed costs are considerable, determining if products made in-house will be produced in one or more facilities, and if these facilities should be located in one or more countries. a country has a comparative advantage in a good whose production is intensive in the factors that are abundantly available in that country; A company would locate the production facilities in these countries that offer the best comparative advantage, Goods with high value-to-weight ratios are expensive but do not weigh very much. The traditional method of product costing, where the costs of direct materials, direct labor, and factory overhead are included, is called [{Blank}] costing. The customers arrive at an average rate of 6 per hour. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budg, A firm whose price is below its average cost: a. is earning positive economic profit. Week 1 2 3 4 5 6 MP Southern Mfg., Inc., is currently operating at only 78 percent of fixed asset capacity. Consider the following two mutually exclusive alternatives, related to an improvement project, and recommend which one should be implemented. The shutdown point is when: A) A firm can no longer pay its debts. Which of the following is (are) true about capacity cushion? The actual price per pound of material is $78; the standard. a) all of the other choices b) changing the mix of products c) equipment maintena What are the advantages and disadvantages of incremental versus one-step expansion for expanding capacity? Centralized generation refers to the large-scale generation of electricity at centralized facilities. Its average resource utilization per year is calculated as 70%. 11.One production facility will usually be favored when a. b. demand is higher than the minimum efficient scale. Capacity planners must keep a narrow focus in order to stay on track. A study undertaken by the materials management dep Materials used by the Truck Division of Armstrong Motors are currently purchased from outside suppliers at a cost of $339 per unit. The capacity is 0.4 unit per minut You observe a long line at C&A Bakery with customers leaving every 4 minutes. Assume Baldwin's product Bid invests in increasing its capac You are playing rock-pass-scissors with a friend. Share sensitive information only on official, secure websites. In general, centralized power plants can affect the environment in the following ways: In addition to these environmental impacts, much of the primary energy (total energy content) of fossil fuels burned at power plants is wasted during generation and delivery to end-users. A. direct materials cost B. direct labor cost C. manufacturing overhead cost D. period cost, Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. b. identifying capacity gaps. 2. production Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. - control over quality. The firm is currently producing 52 units of output, marginal cost is $17, average total cost is $15 and average va, If a competitive firm is selling 1,000 units of its product at a price of $9 per unit and earning a positive profit, then: a. its total cost is less than $9,000. b) manage, A producer is hiring 20 units of labor and 6 units of capital (bundle A). Each backpack has a gross profit of $40, a holding cost of $10, and a shortage cost of $15. Find the values for APP and MPP. The MPK = 100L and MPL = 100K. Capacity Planning Questions and Answers | Homework.Study.com You'll get a detailed solution from a subject matter expert that helps you learn core concepts. The amount of production possible under normal working conditions, including planned downtime and scheduled vacations, is called: A. actual capacity. a) What is the Economic Prod, Consider a product with a daily demand of 400 units, a setup cost per production run of $100. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $____. The fatigue data for a steel is given below: |Stress Amplitude (MPa)|470|440|390|350|310|290|290|290 |Cycles to Failure|1x10^4|1x10^4|1x10^5|1x10^5|1x10^6|1x10^6|1x10^7|1x10^8 a. A loan processing operation that processes an average of 3 loans per day. Who did Floyd Dominy marry? The electricity generated by centralized generation is distributed through the electric power grid to multiple end-users. and services in-house, All activities associated with the flow and transformation of goods and services from the raw material stage to the end user, together with the corresponding flows of monetary funds and information As pizza, topped with barbecue chicken, became popular at specialty restaurants, Pizza Hut and Papa John's introduced a similar pizza. The following standards for variable manufacturing overhead have been established for a company that makes only one product. Which of the following has the highest value-to-weight ratio? Fixed costs of production in the short run a) cannot be reduced by producing less output. Determine the profit maximizing levels of labor abd output. The wage rate in this area is w = $15, and the cost of capital is r = .05. a.