The typical monthly production mix at Bangor Industries is as follows: Deluxe mo

Question

The typical monthly production mix at Bangor Industries is as follows: Deluxe models Regular models Economy models 40% 20% 40% Each deluxe model typically requires 6 hours of labor and 11 hours of machine time. Each regular model takes 4.5 hours of labor and 8 hours of machine time. Finally, the economy model needs, on average, 3 hours of labor and 5 hours of machine time a. The weighted per-unit planning value for machine hours is 8. (Enter your response rounded to two decimal places.) The weighted per-unit planning value for labor hours is(Enter your response rounded to two decimal places.)

Explanation / Answer

Model Type Product Mix Labor Hours per unit Machine hours per unit Delux model 40% 6 11 Regular model 20% 4.5 8 Economy model 40% 3 5 Weighter per-unit planning value for labor hours: WPV= 0.4(6) + 0.2(4.5) +0.4(3) Answer 4.5 Weighter per-unit planning value for Machine hours: WPV: 0.4(11) + 0.2(8) + 0.4(5) Answer 18

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