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il63 [147K]
3 years ago
6

The town of Pittsford, NY is in need of a new water treatment plant to meet its average daily demand of 18, 000 m3/d and is acce

pting proposals from consulting firms. EMW Environmental has proposed to construct a plant which will be capable of producing 1750 m3/h and will have a storage reservoir to hold 3, 975m3of water. A second firm, EnviroSolution, is proposing Pittsford construct a plant which will produce 2, 250 m3/h, but will not have any storage capacity. Which proposal do you recommend? Show all calculations and provide a multi-sentence explanation of your decision.
Business
1 answer:
svlad2 [7]3 years ago
3 0

Answer:

The 1st plant with a storage reservoir is a better option as compared to that of the 2nd plant.

Explanation:

Suppose the factor for variation in hourly demand is 2 So the average hourly demand is given as

Average Hourly Demand=Factor x Average Daily Demand

AHD=2 x 18000 m3

AHD=36000 m3

For the first pump

The Quantity in storage tank is 3975 m3

So the amount of pumping required is

Q_{pump1}=AHD-Q_{reservoir}\\Q_{pump1}=36000-3975 \\Q_{pump1}=32025 m^3

For this value the pump will work for following hours

t_{pump1}=\frac{Q_{pump}}{pumping rate_1}\\t_{pump1}=\frac{32025}{1750}\\t_{pump1}=18.3 \, hours

So the pump 1 can complete the demand of the town by working for 18.3 hours.

Now in order to complete the demand, the second pump is given as

Q_{pump2}=AHD\\Q_{pump2}=36000 m^3

For this the pump will work for as

t_{pump2}=\frac{Q_{pump2}}{pumping rate_2}\\t_{pump2}=\frac{36000}{2250}\\t_{pump2}=16 \, hours

So the pump 2 requires 16  hours to complete the demand of the town.

Here it is important to note that the realistic demand of the water can vary from the average value and thus when there is a drastic requirement of water in certain cases, the pump 2 will fail. Also pump 2 has to be run continuously and will produce excessive water which will be wasted if the hourly demand is less than that of the production value.

In context of this, the 1st plant with a storage reservoir is a better option as compared to that of the 2nd plant.

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Several years after reengineering its production process, King Corporation hired a new controller, Christine Erickson. She devel
Dovator [93]

Answer:

King Corporation

a. Computation of total budgeted manufacturing overhead cost:

 Activities                                   Standard      Deluxe      Total

Materials handling (number of parts):

Standard = 8 x $4 x 1,000         $32,000

Deluxe = 10 x $4 x 1,000                               $40,000      $72,000

Machine setup (number of parts):

                = 20 x $375                $7,500        $7,500       $15,000

Insertion of parts (number of parts):

Standard = 8 x $28 x 1,000  $224,000

Deluxe = 10 x $28 x 1,000                         $280,000   $504,000

Finishing (direct labor hours):

Standard = 2 x $54 x 1,000  $108,000

Deluxe = 3.5 x $54 x 1,000                      $189,000     $297,000

Total                                      $371,500    $516,500     $888,000

b. Computation of the manufacturing overhead cost per wheel of each model using ABC:

Standards = $371,500/1,000 = $371.50

Deluxe =     $516,500/1,000 = $516.50

c. Computation of the company's traditional plantwide overhead rate to determine manufacturing overhead cost per wheel:

Overhead rate = $888,000/6,000 = $148

Manufacturing overhead cost per wheel:

Standard = $148 x 2.6 = $384.80

Deluxe = $148 x 3.4   = $503.20

Explanation:

a) Calculations:

Total overhead cost = $888,000

Allocation based on total direct labor hours per wheel

Plantwide overhead rate:

Total labor hours:

Standard  2.6 x 1,000 = 2,600 hours

Deluxe  3.4 x 1,000 = 3,400 hours

Total labor hours = 6,000 (2,600 + 3,400)

= $888,000/6,000 = $148 per direct hour

b) According to wikipedia.com, "Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. This model assigns more indirect costs into direct costs compared to conventional costing."

3 0
3 years ago
Pell is the principal and Astor is the agent in an agency coupled with an interest. In the absence of a contractual provision re
Verdich [7]

Answer: B. Pell: No; Astor: Yes.

Explanation: According to Termination of agency law:

-An agent is entitled to renounce his power by refusing to act or by notifying the principal that he will not act for the principal.

The agent can terminate the agency first in absence of contractual agreement relating to the provision of duration of contract.

3 0
3 years ago
According to the Florida bureau of economic research, the mean rent price for condo in Florida is $ 700, We want to test this hy
CaHeK987 [17]

Answer:

The answer is a.

Explanation:

I can safely say that in order to have an exact value of an average of $ 700, it is because an initial survey had to be made of people in 50 condominiums that allowed finding several sample means and finally finding the total sample mean, this data allows determining an exact average of reliable values ​​supplied by respondents in the sample.

8 0
3 years ago
The following information pertains to Sunland Company.
Roman55 [17]

Answer:

A. Adjusted cash balance per bank $10,053

Adjusted cash balance per book $ 10,053

B. July 31

Dr Cash $ 2,376

Cr Accounts Receivable $ 2,376

July 31

Dr Bank service charge $47

Cr Cash $ 47

Explanation:

Preparation of Bank Reconciliation

31-Jul-22

SUNLAND COMPANY

Cash Balance per bank statement $7,688

Add: Deposit in transit $ 3,060

$ 10,748

Less: Outstanding checks $ 695

Adjusted cash balance per bank $ 10,053

Cash balance per books $ 7,724

Add: Electronic fund transfer received $2,376

$10,100

less; Bank service charge $ 47

Adjusted cash balance per books $10,053

B. Preparation of Journal entry

July 31

Dr Cash $ 2,376

Cr Accounts Receivable $ 2,376

(To record electronic fund transfer received by bank)

July 31

Dr Bank service charge $ 47

Cr Cash $ 47

(To record bank service charges )

3 0
4 years ago
Your factory has been offered a contract to produce a part for a new printer. The contract would last for three? years, and your
emmasim [6.3K]

Answer and Explanation:

As per the data given in the question,

                  ($ million)                             ($ million)

Year Cash flows PVF at 8.2% Present value

0         -8.05             1                   -8.05

1          5.08             0.9242   4.70

2          5.08            0.8542           4.34

3           5.08             0.7894   4.01

Net present value                4.99

   

Internal rate of return                  0.40

Net present value = $4.99 million

The project should be accepted

Yes, The IRR rule is agree with NPV.

Please find the attachment for better understanding

3 0
4 years ago
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