Business, 05.02.2021 23:50 lavardamon123

A production machine is purchased for an initial cost including installation of $274,876. Its anticipated service life is 11 years. The machine is scheduled for 1-shift(s) per day, each shift consists of 9 hours, 5 days per week, and 48 weeks per year. The applicable overhead rate on this type of equipment is 0.165. This machine will produce a batch of 73 parts where each part has a starting material cost of $2.11. The actual processing time of the operation is 5.38 minutes. The time to load and unload each workpiece requires 2.18 minutes. The tooling cost is $6.5 and each tool can be used for 22.44 pieces before it has to be changed. Changing the tool takes 2.21 minutes. Before production begins the machine must be setup which takes 1.95 hours. The average hourly wage rate is $13.66/hr, and the applicable labor overhead rate is 0.43. Determine the labor cost in terms of dollars per hour

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A production machine is purchased for an initial cost including installation of $274,876. Its antici...

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