Johnny Now, Inc. produces two different models of outhouses. Demand next period is expected to be 12,000 and 18,000 units for Models A and B, respectively. Model A has CPOPF planning factors of 0.75 and 0.60 for direct labor and machine time, respectively. Model B has CPOPF planning factors of 0.50 and 0.80 for direct labor and machine time, respectively. Historically department G uses 24% of the direct labor and machine time for these products, while department H uses the remaining 76%. What is the machine time requirement for department H next period?
A) 5,184 hours
B) 13,680 hours
C) 14,400 hours
D) 21,600 hours
E) 16,416 hours

Question

Quizplus · Accepted Answer

First, calculate the total machine time requirement for both models:- Model A machine time = 12,000 units * 0.60 = 7,200 hours- Model B machine time = 18,000 units * 0.80 = 14,400 hoursTotal machine time = 7,200 + 14,400 = 21,600 hoursDepartment H uses 76% of the machine time:- Machine time for department H = 21,600 * 0.76 = 16,416 hours