Maintaining a clean working environment is important to Namco, an industrial parts manufacturer. Cleaning the plant is the respo

Question

4 years ago

5

Maintaining a clean working environment is important to Namco, an industrial parts manufacturer. Cleaning the plant is the respo

nsibility of the maintenance department.
The 65,000 square foot plant is thoroughly cleaned from four to eight times a month depending on the level and stage of production. For the most recent month, March, the plant was cleaned four times.

The production schedule for the next quarter (April through June) indicates that the plant will need to be cleaned five, six, and eight times respectively. Two of the resources needed to clean the plant are labor and cleaning supplies.

The cost driver for both resources is number of times the plant is cleaned. Plant cleaning laborers are full-time employees who are paid the same wages regardless of the number of times the plant is cleaned. Cleaning supplies is a variable cost. The March cost of labor was $25,000 and cleaning supplies used cost $8,500.

Prepare a table that shows how labor cost, cleaning supplies cost, total cost and total cost per cleaning changes in response to the number of times the plant is cleaned. What is the predicted total cost of plant cleaning for the next quarter?

Business

1 answer:

Zolol [24] · Answer 1 · 2022-01-26T08:06:00+03:00

Answer:

For the month of march, labour cost per cleaning = $250,000/4 = $62,500

supplies cost per cleaning = $8500/4 = $2,125

For the month of April ,

labour cost = $62,500 * 5 = $312,500

Supplies cost = $2,125 * 5 = $10,625

for the month of May,

labour cost = $62,500 * 6 = $385,625

supplies cost = $2,125 * 6 = $12,750

For the month of June

Lanour cost = $62,500 * 8 = $800,000

Supplies Cost = $2,125 * 8 = $17,000

Total estimated cost for the Quarter

Labour cost :

April $312,500

May 385,625

June 800,000 1,498,125

Supplies Cost :

April $10,625

May 12,750

June 17,000 40,375

Total cost 1,538,500

Explanation: