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  • A Furniture Manufacturing Company Working On A 40 Hours Per Week Basis Make 100 Chairs

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    FALAK NAZ MUHAMMAD HUSSAIN
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    A furniture company makes 100 chairs per week with direct material costs of $700, direct labor costs of $300, and overhead costs of $500. The company's productivity is calculated. If production increases to 135 chairs per week, the new productivity is calculated. For a 15% increase in total productivity through materials cost reduction only, the required reduction in materials costs is calculated.

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    A Furniture Manufacturing Company Working on a 40 Hours Per Week Basis Make 100 Chairs

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    A furniture company makes 100 chairs per week with direct material costs of $700, direct labor costs of $300, and overhead costs of $500. The company's productivity is calculated. If production increases to 135 chairs per week, the new productivity is calculated. For a 15% increase in total productivity through materials cost reduction only, the required reduction in materials costs is calculated.

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    1K views2 pages

    A Furniture Manufacturing Company Working On A 40 Hours Per Week Basis Make 100 Chairs

    Uploaded by

    FALAK NAZ MUHAMMAD HUSSAIN
    A furniture company makes 100 chairs per week with direct material costs of $700, direct labor costs of $300, and overhead costs of $500. The company's productivity is calculated. If production increases to 135 chairs per week, the new productivity is calculated. For a 15% increase in total productivity through materials cost reduction only, the required reduction in materials costs is calculated.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Q1 A furniture manufacturing company working on a 40 hours per week basis make 100 chairs.

    The sales
    price is $70 each, and the company has the following costs: (5 Marks)
     Direct Material $700
     Direct Labor $300
     Overhead $500
    a. Calculate the productivity of the company
    b. What will be the new productivity if the company decides to make 135 chairs per week?
    c. If the company decides to improve productivity through materials costs reduction only, how much
    these cost must be reduced in order to achieve 15 percent increase in total productivity?

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