Randolph Molding is a compression molding plastics company that specializes in high priced jar covers for the cosmetics industry. Because appearance is so important, customers can reject covers even for minor blemishes that do not affect the cover's function. Therefore, preventing dust and contamination in the molding process is an ongoing problem for the company. Each order requires a machine setup that can be complex. The company recently implemented some major process improvements. The value-added analysis of the compression molding process for placing good pieces in inventory appears below:

Required:
(a) Calculate the total savings for each 1,000-order jar cover from implementing the process improvements.
(b) Compute the savings in percentage terms.
Setup labor is paid $25 per hour. Inspection labor is paid $12 per hour and all other factory labor is paid $15 per hour.

Question

Randolph Molding is a compression molding plastics company that specializes in high priced jar covers for the cosmetics industry. Because appearance is so important, customers can reject covers even for minor blemishes that do not affect the cover's function. Therefore, preventing dust and contamination in the molding process is an ongoing problem for the company. Each order requires a machine setup that can be complex. The company recently implemented some major process improvements. The value-added analysis of the compression molding process for placing good pieces in inventory appears below:
 
Required:
(a) Calculate the total savings for each 1,000-order jar cover from implementing the process improvements.
(b) Compute the savings in percentage terms.
Setup labor is paid $25 per hour. Inspection labor is paid $12 per hour and all other factory labor is paid $15 per hour.

Quizplus · Accepted Answer

The Answer of Randolph Molding is a compression molding plastics company that specializes in high priced jar covers for the cosmetics industry. Because appearance is so important, customers can reject covers even for minor blemishes that do not affect the cover's function. Therefore, preventing dust and contamination in the molding process is an ongoing problem for the company. Each order requires a machine setup that can be complex. The company recently implemented some major process improvements. The value-added analysis of the compression molding process for placing good pieces in inventory appears below:
 
Required:
(a) Calculate the total savings for each 1,000-order jar cover from implementing the process improvements.
(b) Compute the savings in percentage terms.
Setup labor is paid $25 per hour. Inspection labor is paid $12 per hour and all other factory labor is paid $15 per hour.

Randolph Molding Is a Compression Molding Plastics Company That Specializes