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Lander Metals Inc. manufactures automobile spare parts for car manufacturers. Management is attempti

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Lander Metals Inc. manufactures automobile spare parts for car manufacturers. Management is attempti

Lander Metals Inc. manufactures automobile spare parts for car manufacturers. Management is attempting to search for ways to reduce manufacturing labor costs and has received a proposal from a consulting company to rearrange the production floor next year. Using the information below regarding current operations and the new proposal, which of the following decisions should management accept?

   Current   Proposed
Required machine operators   16   12
Materials-handling workers   3.00   3.00
Employee average pay   $15 per hour   $18 per hour
Hours worked per employee   3,400   3,150

A) Do not change the production floor.
B) Rearrange the production floor.
C) Either, because it makes no difference to the employees.
D) It doesn't matter because the costs incurred will remain the same.

Textbook

Cost Accounting

Edition: 14^th

Authors: Horngren, Datar, Rajan

Read 1198 times

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jerico Author

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10 years ago

This solved my problem perfectly, thank you for your kind input.

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cyborg

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10 years ago

I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.

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