assume for the United States that the opportunity cost of assume for the United
ID: 2330665 • Letter: A
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assume for the United States that the opportunity cost of assume for the United States that the opportunity cost of assume for the United States that the opportunity cost of Score: 0 of 39 pts Hw score: 0% 0 of 118 pts Fam2-A1 (similar to) E Question Hep Maintaining a clean working environment is important to Volex, an industrial parts manufacturer Cleaning the plant is the responsabilily of the maintenance department The 30,000 square an the level and stage of production For the most recent month, March, the plant was cleaned four limes The foot plant is tharoughly cleaned from four to eight t plant are labor and cleaning supplies. The cost driver for both resourcos is wages regardless of the number of tlines the plant is deaned Cleaning supplies is a variable cost The March cost f Read the requrements imes a month depending ou h June indcates that the plant w need to be de schedule for the next quarter April nod f e, six and eight i es respect for both resources is number of tines the plant is cleaned Plant cleaning laborers are full Sime employees Two of the resources ely needed to dlean the who are paid the same labor was $28,000 and cleaning supplies used cost $1,200 Requirement 1. Prepare a table that shows how labor cost, dleaning supplies cost, total cost What is the predicted total cost of plant cleaning for the next quarter? and total cost per deaning changes in response to the number of times the plant is cleaned Begin by preparing a table that shows how labor cost, cloaning supplies cost total round until the final answer for the cost per cleaning. Then round to the nearest wihiole cost, and total cost per cleaning changes in response to the number of times the plant is cleaned. (Do not Number of Square Times Plant Feet is Cleaned Cleaned Supplies Cost Total Cost Cost per Cleaning Cost 30000 96 30000 28000 Requirements 30000 28000 1. Prepare a table that shows how labor cost cleaning supplies cost, total cost and total cost per cleaning changes in response to the number of times the plant is cleaned What is the predicted total cost of plant cleaning for the next quarter? 2. Suppose Volex can hire an outside cleaning company to clean the plant as needed. The charge rate for cleaning is $4.500 per plant cleaning if the outside cleaning company is hired Volax can lay off the workers who are now cleaning the plant and will spend nothing for cleaning supplies wal Volex save money with the outside cleaning company over the next quarter? Prepare a schedule that supports your answer Print Done Enter any number in the eair belos and then click Check AnswerExplanation / Answer
Requirement 1
Number of times Plant is Cleaned
Square feet Cleaned
Labor cost
Cleaning Supplies Cost
Total Cost
Cost Per Cleaning
4
30000
$ 28,000.00
$ 1,200.00
$ 29,200.00
$ 7,300.00*
5
30000
$ 28,000.00**
$ 1,500.00
$ 29,500.00
$ 5,900.00
6
30000
$ 28,000.00
$ 1,800.00
$ 29,800.00
$ 4,966.67
7
30000
$ 28,000.00
$ 2,100.00
$ 30,100.00
$ 4,300.00
8
30000
$ 28,000.00
$ 2,400.00
$ 30,400.00
$ 3,800.00
*Cost per Cleaning is calculated as required by question. Do not get confused with cost per feet cleaned because that is not asked in the question.
**Labor cost will not change in any alternative as it is fixed.
Supply cost Schedule
Supply Cost for 4 times cleaning
Already given
$ 1,200.00
Cost of Supplies for 1 Cleaning
(1200/4)
$ 300.00
Cost for 5 Cleaning
(5*300)
$ 1,500.00
Cost for 6 Cleaning
(6*300)
$ 1,800.00
Cost for 7 Cleaning
(7*300)
$ 2,100.00
Cost for 8 Cleaning
(8*300)
$ 2,400.00
Predicted Total cost of plant cleaning for the nest Quarter
Months
Number of Cleanings
Cost
April
5
$ 29,500.00
May
6
$ 29,800.00
June
8
$ 30,400.00
Total Cost
$ 89,700.00
Requirement 2
Comparative Cost Analysis
Outsourcing Cost
Month
Number of Cleaning in month
Cost per Cleaning on Hire
Total Cost of hire
April
5
$ 4,500.00
$ 22,500.00
May
6
$ 4,500.00
$ 27,000.00
June
8
$ 4,500.00
$ 36,000.00
(A) Total Outsourcing Cost
$ 85,500.00
(B) Total in house Cost
$ 89,700.00
(B-A) Benefit in Outsourcing
$ 4,200.00
It is Better if Volex hire an Outside Cleaning Company as in-house cost is higher than Outsourcing cost.
Volex will save $4200 if it Hires Outside Cleaning Company.
Number of times Plant is Cleaned
Square feet Cleaned
Labor cost
Cleaning Supplies Cost
Total Cost
Cost Per Cleaning
4
30000
$ 28,000.00
$ 1,200.00
$ 29,200.00
$ 7,300.00*
5
30000
$ 28,000.00**
$ 1,500.00
$ 29,500.00
$ 5,900.00
6
30000
$ 28,000.00
$ 1,800.00
$ 29,800.00
$ 4,966.67
7
30000
$ 28,000.00
$ 2,100.00
$ 30,100.00
$ 4,300.00
8
30000
$ 28,000.00
$ 2,400.00
$ 30,400.00
$ 3,800.00
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