Assignment
Question 1
If you have these 2 constraints:
0.6R+4D £ 180,000 Machine Hour constraint
3R+5D £ 150,000 Direct Labor Hour constraint
Required:
a. Draw a graph showing the possible production plans for this company.
b. From your opinion where is the feasible area of the production plan. Explain your answer.
Question 2
A housekeeping support department budgets its costs at SR 40,000 per month plus SR 12 / hour. For January the following were the estimated and actual hours provided by the housekeeping support department to 3 operating department.
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Estimated hours spent cleaning
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Actual hours spent cleaning
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Department A
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1600
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1500
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Department B
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1400
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1600
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Department C
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2000
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1800
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Total
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5000
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4900
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Required:
A. What is the support department's allocation rate if estimated activity is the allocation base?
B. What is the support department's allocation rate if actual activity is the allocation base?
C. List one advantages and one disadvantage for each types of allocation rate.
3- Al Yamamah Steel Industries Co. uses the step method for allocating the costs of its service departments to operating departments. The company has two support departments (Human Resource and Information Technology) and two operating departments (Hot Rolled Hollow Steel and Cold Rolled Hollow Steel).
Al Yamamah Steel Industries Co. decided to allocate Human Resource department costs based on the number of employees in each department and Information Technology costs based on the number of machine hours in each department.
Required:
a- Give a numerical example for the four departments as a given information.
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Support Departments
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Operating Departments
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TOTAL
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Human Resource
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Information Technology
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Hot Rolled Hollow Steel
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cold Rolled Hollow Steel
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Total department cost
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Number of employees
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Number of machine hours
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b- Then based on your given information, use the step-down method to allocate support department costs.
Allocate cost:
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Human Resource
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Information Technology
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TOTAL
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Answers will be varied among students
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.