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The Webster Manufacturing Company produces a popular type of serving cart. This product, the SL72, is made from the following parts: 1 unit of Part A, 1 unit of Part B, and 1 unit of Subassembly C. Each subassembly C is made up of 2 units of Part D, 4 units of Part E, and 3 units of Part F. Develop a material structure tree for this. The lead time for each of the parts in the SL72 is one week, except for Part B and Part E, which have a lead time of two weeks.
1. Develop a net materials requirements plan for an order of 800 SL72s. Assume that currently there are no parts in inventory.
2. Develop a net material requirements plan assuming that there are currently 150 units of Part A, 60 units of Part B, 40 units of Subassembly C, and 100 units of Part F currently in inventory.
Calculate the predetermined overhead rate and compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations.
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