Answer: Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to: " B. Allocate some manufacturing overhead to each individual job ".
Explanation: The steps to implement a manufacturing overhead allocation system are:
1) Obtain a detailed list of all general manufacturing costs.
2) Choose an allocation base (machine hours, direct labor hours) to divide the general factory costs by this allocation base and assign general costs to each production unit.
3) The total allocation base is divided by the units produced to know the amount of manufacturing overhead associated with each unit.
4)"B. Assign some general manufacturing expenses to each individual job." For example, product X requires 2 hours of work to produce it and product Y one hour, higher general manufacturing costs will be assigned to product X
This wouldn’t by chance have multiple choice options would it?
Answer:
Pc = 8294.4 units per week
Explanation:
Pc = U * A * ( N * sw * Hsh * Rp )/ n
Where
Pc = production capacity in terms of availability and utilization per week
U = utilization factor = 80% = 0.8
A = availability = 90% = 0.9
N = number of work centers = 8
sw = number of shifts per week = 10
Hsh = number of hrs per shift = 8
Rp = hourly production rate = 18 units /hr
n = number of distinct operations = 1 , same machine & part
So therefore,
Pc = 0.8 * 0.9 (8 * 10 * 8 * 18)/ 1
Pc = 8294.4 units per week
