Accounting Question

Must show all work in excel.

15.1 A company carries 10 items in stock, each with an economic order quantity of $20,000. Through a
program of component standardization, the 10 items are reduced to 5. The total annual demand is the
same, but the annual demand for each item is twice what it was before. In Chapter 10, we learned that
the economic order quantity varies as the square root of the annual demand. Since the annual demand
for each item is now doubled, calculate:
A. The new EOQ.
B. The total average inventory before standardization.
C. The total average inventory after standardization.
15.2 In problem 15.1, if the annual carrying cost is 18% per unit, what will be the annual savings in
carrying cost?
15.6 Bill builds benches in a small shop and he plans to operate five 8-hour days per week. Each bench
has two ends and a top. It takes 5 minutes to cut and sand each end and 2 minutes to make each top.
Assembly requires 8 minutes per bench, and painting requires 5 minutes per bench. Bill has one
employee who makes the tops and ends. Bill will do the final assembly and painting. He also plans 1 hour
per day for setup and teardown for each department.
A. How many benches should he plan to build per week?
B. How many hours per week are required for each person?
C. Suggest ways to increase the number of benches produced per week.
15.8 Parent S requires three of component T and two of component U. Both T and U are run on work
center 30. Setup time for T is 7 hours, and run time is 0.1 hour per piece. For component U, setup time is
8 hours, and run time is 0.2 hour per piece. If the rated capacity of the work center is 120 hours, how
many Ts and Us should be produced in a week?
16.1 The specification for the length of a shaft is 12 inches ± 0.001 inch. If the process standard deviation
is 0.00033, approximately what percentage of the shafts will be within tolerance?
16.2 In problem 16.1, if the tolerance changes to ± 0.0004 inch, approximately what percentage of the
shafts will be within tolerance?
16.4 The specification for the weight of a chemical in a compound is ± 0.06. If the standard deviation of
the weighing scales is 0.02, is the process considered capable?
16.5 The specification for the diameter of a hole is 0.80 inch ± 0.020 inch. The standard deviation of the
drill press is 0.007 inch. Using Cp, calculate whether the process is capable or not.
16.8 A company fills plastic bottles with 10 ounces of shampoo. The tolerance is ± 0.1 ounce. The
process has a standard deviation of 0.02 ounce. For the following situations, calculate the Cpk and
evaluate the process capability.
A. A sample has an average of quantity of 9.95 ounces.
B. A sample has an average of quantity of 9.98 ounces.
C. A sample has an average of quantity of 10.04 ounces.
16.10 A pallet manufacturer has measured the output of a board cutting operation. The boards have a
specification of 24 inches ± 0.5 inch. A sample of the boards is shown below. Calculate the capability of
the board cutting operation. What suggestions would you give to the operator?
24.0 24.1 24.2 23.8 24.3 23.9 24.0 24.1
23.8 24.3 24.2 23.9 24.4 24.0 23.9 24.2