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Consider the Following Information What Are Total Regular Time Costs

Question 84

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Consider the following information:  Period  Forecast 120022003300440055006200 Regular Time: $20 per unit ( 280 units per period maximum)  Overtime: $30 per unit (40 units per period maximum)  Subcontracting:  None available  Beginning Inventory:  None  Carrying Cost: $1 per unit per period  Backorder Cost: $5 per unit per period \begin{array} { l l l } \text { Period } & \text { Forecast } \\\hline 1 & 200 & \\2 & 200 & \\3 & 300 & \\4 & 400 & \\5 & 500 & \\6 & 200 & \\\text { Regular Time: } & \$ 20 \text { per unit ( } 280 \text { units per period maximum) } \\\text { Overtime: } & \$ 30 \text { per unit (40 units per period maximum) } \\\text { Subcontracting: } & \text { None available } \\\text { Beginning Inventory: } & \text { None } \\\text { Carrying Cost: } & \$ 1 \text { per unit per period } \\\text { Backorder Cost: } & \$ 5 \text { per unit per period }\end{array} What are total regular time costs?

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