Determine the manufacturing cost per product if the percentage of good-quality f
ID: 394463 • Letter: D
Question
Determine the manufacturing cost per product if the percentage of good-quality file cabinets is increased from 84% to 90%. Round your answer to 2 decimal places, the tolerance is +/-0.5.
2 Question Answer the following questions. (a1) Correct. The Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold unassembled through catalogs. The company initiates production of 234 cabinet packages each week. The percentage of good-quality cabinets averages 84% per week, and the percentage of poor-quality cabinets that can be reworked is 34%. If the direct manufacturing cost per cabinet is $39 and the rework cost is $31, hat is the manufacturing cost per good product? Round your answer to 2 decimal places, the tolerance is +/-0.05. Manufacturing cost per good product = $ 45.49r cabinet LINK TO TEXT Attempts: 2 of 2 used (a2) Determine the manufacturing cost per productifthe percentage ofgood quality le cabinetss increased from 84% 90% Round your answer to 2 dec mal places, the tolerance is + -0.5Explanation / Answer
Total number of cabinets produced per week = 234
Number of good cabinets per week =84% of 234 =196.56
Number of poor quality cabinets produced per week
= Total number of cabinets produced per week – Number of bad cabinets produced per week
= 234 – 196.56
= 37.44
Therefore, number of reworked cabinets ( reworked percentage @34%)
= 34% of 37.44
= 12.73
Therefore , total number of good cabinets including reworked cabinets
= 196.56 + 12.73
= 209.29
Direct manufacturing cost of 234 cabinets
= $39/ cabinet x 234 cabinets
= $9126
Reworking cost of 12.73 cabinets
= $31 / cabinet x 12.73 cabinets
= $394.63
Total cost
= Direct manufacturing cost + Reworking cost
= $9126 + $394.63
= $9520.63
Therefore , a total cost of $9520.63 is incurred in producing 209.29 good products
Thus, manufacturing cost per good product
= $9520.63/209.29
= $45.49
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.