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Lynndorf Corporation is a manufacturer of tables sold to schools, restaurants, h

ID: 2476942 • Letter: L

Question

Lynndorf Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Lynndorf. but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 50 minutes of labor to assemble a table. The company follows a policy of producing enough tables to insure that 40% of next month's sales are in the finished goods inventory. Lynndorf also purchases sufficient raw materials (legs) to insure that raw materials (legs) inventory is 60% of the following month's scheduled production needs. Lynndorf's sales budget in units for the next quarter is as follows: Lynndorfs ending inventories in units for June 30 are: Assume that Lynndorf Corporation will produce 3,900 units in the month of September. How many employees will be required, for the Assembly Department? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month. Round your answer to 2 decimal places.) 812.50 employees 81.25 employees 3,250.00 employees 20.31 employees.

Explanation / Answer

Total hours required for September production:

= Total number of units to be produced × (minutes required to produce one unit) / 60 minutes

= 3,900×50/60

= 3,250 hours

Number of employees required for assembly department:

= Total number of hours required / (Number of hours per week× number of weeks per month)

= 3,250 / 40×4

= 20.3125 employees.