Explain in two to three sentences without calculations

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Reference no: EM13922923

Dundas Bike Components Inc. of Wheelville, Illinois, manufactures bicycle wheels in two different sizes for the Big Bike Co. assembly plant located across town. David Dundas, the firm owner manager, has just received Big Bik order for the next six months.

a. Under what circumstances will it be possible to develop just one aggregate plan rather than two (one for each size wheel)? Explain in two to three sentences without calculations.
b. Currently Dundas employs 28 full-time highly skilled employees, each of whom can produce 50 wheels per month. Because skilled labor is in short supply in the Wheelville area, David would like to develop one pure level- output plan. There is no inventory of finished wheels on hand at present, but David would like to have 300 on hand at the end of April. Big Bike will tolerate back orders of up to 200 units per month. Show your level plan in tabular form. The amount produced using overtime should be the same except for the last month.
c. Calculate the total annual cost of your plan using thesecosts:

Reference no: EM13922923

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When the projected on hand inventory would be negative : When the projected on hand inventory would be negative without production” to schedule production when the projected on hand inventory would be less than 10 without production.
Explain in two to three sentences without calculations : Under what circumstances will it be possible to develop just one aggregate plan rather than two (one for each size wheel)? Explain in two to three sentences without calculations.
Compare it to the total cost of the plan used in the solved : Compute the total cost of your plan, and compare it to the total cost of the plan used in the solved problem. Assume 20 full-time workers.
Record the accrual of payroll taxes : calculate the employer payroll taxes using the following rates: state unemployment, 5.4%, federal unemployment 0.8%.Journalize the entry to record the accrual of payroll taxes.
Compute the total cost for this plan : Compute the total cost for this plan, and compare it to the cost of the plan used in the solved problem. Assume 20 full-time workers and regular monthly production regular capacity.
Assume regular monthly production regular capacity : Use subcontracting as needed, but no more than 20 units per period. Compute the total cost of each plan. Which plan has the lowest cost? Assume regular monthly production regular capacity.

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