Eichhorn Company's Process Engineering Department Has the Responsibility of Rearranging

question 152

Essay

Eichhorn Company's Process Engineering department has the responsibility of rearranging the individual work tasks for each assembly line worker, with the goal of utilizing each worker as much as possible.Currently, on average, each assembly line worker only has tasks that require 47 minutes per hour, and the plant manager wants this increased by at least 10 %.The company builds the Eichhorn Rocket Roadster, which is selling out of dealers' showrooms faster than the company's assembly plants can produce them.If production can't be increased, then sales will soon suffer.Required:
Explain the effect on total costs of production, using the number of engineering changes (from Process Engineering)and at least two other cost drivers.Choose the cost driver that you think is most logical in the circumstances, and begin your answer with a brief explanation of a cost driver.

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