# Foldrite Case

Good Essays
1207 Words
Grammar
Plagiarism
Writing
Score
Foldrite Case
Group: Nguyen Huy Cuong Le Quynh Anh Dang Thi Xuan Phuong

SOLUTION FOR FOLDRITE FURNITURE CASE
Service level is 95% (5% of output is defect)
Wages skilled / labor hour = 19 + 33% * 19 = \$25.27
Wages unskilled / labor hour = 9 + 10%*9 = \$9.9
Hiring cost per worker (skilled) = \$1,500/worker
Hiring cost per worker (unskilled) = 25*2*1.33 = \$66.5/worker
Training cost per unskilled to be skilled (4 weeks with full wage) = 4*9.9 = \$39.6/worker
Production requirement = demand forecast = Sum of (daily demand * production days)
Production hours required (skilled) = Sum (Production requirement * time to produce one unit)
Production hours required (unskilled) = Sum (Production requirement *time to produce one unit)
Hours per month per worker = Workdays per month * Working hours a day (10)
Workers required (skilled) = Production hours required (skilled)/hours per month per worker
Workers required (unskilled) = Production hours required (unskilled)/hours per month per worker
Hiring cost (unskilled) = No of new workers (unskilled) * hiring cost (66.5)
Direct Labor cost = Production hours required (skilled) * wages (25.27) + Production hours required (unskilled) * wages (9.9)
Layoff cost is calculated from http://www.coworkforce.com/uibestimator/ as given in the case Name | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | Cloud Chair (unit) | 4,480 | 15,000 | 45,000 | 73,800 | 65,250 | 79,200 | 86,400 | 67,150 | 34,000 | 27,000 | 14,400 | 12,600 | 524,280 | AlStrong (unit) | 18,816 | 17,850 | 27,000 | 29,700 | 28,500 | 36,000 | 32,400 | 29,750 | 25,500 | 25,200 | 20,800 | 15,400 | 306,916 | GreenComfort (unit) | 16,960 | 16,530 | 22,680 | 25,200 | 22,500 | 27,900 | 25,200 | 21,250 | 21,250 | 22,500 | 17,600 | 14,000 | 253,570 |

## You May Also Find These Documents Helpful

• Good Essays

Cost of new equipment \$200,000 Expected life of equipment in years 5 years Disposal value in 5 years \$40,000 Life production - number of cans 5,500,000 Annual production or purchase needs 1,100,000 Number of workers needed 3 Annual hours to be worked per employee 2000 hours Earnings per hour for employees \$12.00 Annual health benefits per employee \$2,500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can \$0.25 Other variable production costs per can \$0.05 Costs to purchase cans - per can \$0.45 Required rate of return 12% Tax rate 35% Make Purchase Need of 1,100,000 cans per year *.25 \$275,000 Variable production costs *.05 \$55,000 Wages \$72,000 Health benefits \$7,500 Other benefits \$12,960 Total wages and benefits \$92,460 \$422,460 \$495,000 (72540) Before Tax Tax Effect After Tax Item Amount Amount Annual cash savings (make vs buy) \$72,540 0.65 \$47,151 * Tax effect on Annual Cash Savings is 1 - tax rate Tax savings due to depreciation \$32,000 0.35 \$11,200 * Tax effect on Depreciation is the tax rate Total annual cash flow \$58,351.00 Initial investment/ Annual Cash Saving \$200,000/ \$58351= 3.4 years Annual cash savings (before tax effect) \$72,540 Less Depreciation \$(32,000) Before tax income \$40,540 Tax at 35% rate \$(14,189) After tax income \$26,351 \$ 26,351 / 200,000 13.18% Before Tax After tax 12% PV Present Item Year Amount Tax % Amount Factor Value Cost of machine 0 \$(200,000) \$(200,000) 1 (200,000) Annual cash savings 1-5 \$72,540 0.65…

• 371 Words
• 2 Pages
Good Essays
• Satisfactory Essays

Average labor cost per unit = (22*.02) + (23*.34) + (24*.05) + (25*.39) + (28*.20) = \$24.81…

• 256 Words
• 2 Pages
Satisfactory Essays
• Satisfactory Essays

document, there is a section titled “Monthly or Daily Wages or Task Work Rates.” The sections…

• 799 Words
• 1 Page
Satisfactory Essays
• Good Essays

Note: For this problem, only items 5 and 6 are considered "labor" for the purpose of calculating items 8 and 9.…

• 1092 Words
• 5 Pages
Good Essays
• Good Essays

Compute the unit product cost that would appear on the job cost sheet for this job:…

• 1010 Words
• 5 Pages
Good Essays
• Good Essays

\$ 50,176 20,123 4,575 (73,091) 287 1,757 3,827 (1,653) (2,226) (51) 39,752 67,549 (11,149) 92,222 \$(88,395)…

• 682 Words
• 3 Pages
Good Essays
• Satisfactory Essays

‐ The labourers are expected to work for a total of 4000 hours per month at a wage rate of…

• 625 Words
• 3 Pages
Satisfactory Essays
• Powerful Essays

a) Journalize the above transactions | | | | | | | Date | Account Titles and Explanation | Debit | Credit | 2011 | | | | Dec. 5 | Cash | 90 | | | Service Revenue | | 90 | | Unearned Service Revenue | 60 | | | Service Revenue | | 60 | 8 | Cash | 300 | | | Accounts Receivable | | 300 | 9 | Cash | 750 | | | Unearned Service Revenue | | 750 | 15 | Accounts Payable | 50 | | | Cash | | 50 | 16 | Accounts Payable | 600 | | | Cash | | 600 | 19 | Cash | 60 | | | Unearned Service Revenue | | 60 | 23 | Cash | 3000 | | | Service Revenue | | 3000 | | Accounts Receivable | 1000 | | | Service Revenue | | 1000 | 23 | Supplies | 1250 | | | Cash | | 1250 | 23 | Salary Expense | 800 | | | Cash | | 800 | 28 | Dividends | 500 | | | Cash | | 500 | | | | | b) Post the December transactions. (Use the general ledger accounts prepared in Ch. 3) | | | | | | Cash | | | | Nov. 8 500 | Nov. 11 95 | | | 16 2000 | 14 125 | | | 25 60 | 17 900 | | | 29 100 | 30 1200 | | | Dec. 5 90 | Dec.15 50 | | | 8 300 | 16 600 | | | 9 750 | 23 1250 | | | 19 60 | 23 800 | | | 23 3000 | 28 500 | | | Balance 1340 | | | | | | | | Common Stock | | | | | Nov. 8 500 | | | | 15 300 | | | | Balance 800 | | | | | | | | | | | Supplies | | | | Nov. 11 95 | | | | 14 125 | | | | Dec. 23 1250 | | | | Balance 1470 | | | | | | | | Equipment | | | | Nov. 15 300 | | | | 17 900 | | | | Balance 1200 | | | | | | | | Notes Payable | | | | | Nov. 16 2000 | | | | Balance 2000 | | | | | | | Accounts Payable | | | | | Nov. 30 600 | | | | 30 50 | | | Dec. 15…

• 676 Words
• 3 Pages
Powerful Essays
• Satisfactory Essays

200 1,000 617.03 250 1,000 659.75 250 1,250 771.29 300 1,200 791.70 be written in per-worker terms:…

• 829 Words
• 4 Pages
Satisfactory Essays
• Satisfactory Essays

Direct Labor (Exhibit 3) 225,000 \$3 15,000 \$3.75 *Plant Management (33333 of 225K) 11,111 0.15 8,888.80 \$2.22 * Machine Related (\$xx per hr) 1,875 0.5 360 \$0.3 *Setups (@ \$xx.xx) 833.31 \$83.33 8,333.13 \$83.33…

• 440 Words
• 2 Pages
Satisfactory Essays
• Powerful Essays

The fact that "All the company's employees  direct and indirect  are paid for full 40-hour workweeks" strongly indicates that the direct labor is an entirely fixed cost (i.e., it has no variable component, since the employees get paid for 40 hors per week no matter how much they work).…

• 748 Words
• 3 Pages
Powerful Essays
• Satisfactory Essays

h) Direct Labor Cost = (30 + 20 + 35 + 25 + 30 + 45 + 40 ) sec * \$15/hour = \$0.9375/unit…

• 758 Words
• 4 Pages
Satisfactory Essays
• Good Essays

Labor Efficiency Variance = difference between actual hours worked and standard hours allowed per hour x standard cost…

• 448 Words
• 2 Pages
Good Essays
• Satisfactory Essays

Schedule 5 Projected Employee Salary Personnel | No. | 2014 | 2015 | 2016 | 2017 | 2018 | | | Rate | Annual Salary | Rate | Annual Salary | Rate | Annual Salary | Rate | Annual Salary | Rate | Annual Salary | Security Guard | 1 | 9,000.00 | 108,000.00 | 9,900.00 | 118,800.00 | 10,890 | 130,680.00 | 11,979.00 | 143,748.00 | 13,176.90 | 158,122.80 | Guest Relations Officer | 1 | 12,000.00 | 144,000.00 | 13,200.00 | 158,400.00 | 14,520.00 | 174,240.00 | 15,972.00 | 191,664.00 | 17,569.20 | 210,830.40 | Cashier | 1 | 10,000.00 | 120,000.00 | 11,000.00 | 132,000.00 | 12,100.00 | 145,200.00 | 13,310.00 | 159,720.00 | 14,641.00 | 175,692.00 | Sales and Marketing Manager | 1 | 20,000.00 | 240,000.00 | 22,000.00 | 264,000.00 | 24,500.00 | 290,400.00 | 26,620.00 | 319,440.00 | 29,282.00 | 351,384.00 | NOTE: The increase in salaries is based on the 10% annual increase.…

• 1647 Words
• 7 Pages
Satisfactory Essays
• Satisfactory Essays

Clickr Q: A new sales system is being deployed, 20 employees at \$15/h + \$10/h in benefits ea. require 10 hours of training. Employees are expected to complete the training during breaks between scheduled client calls, there will be no overtime. What is the real labor cost of this training assuming no lost sales?…

• 372 Words
• 2 Pages
Satisfactory Essays