Funland Manufacturing Company Produces Specially Machined Parts

question 181

Essay

Funland Manufacturing Company produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers:
Activity drivers for each activity have been identified and their practical capacities listed:
The cost of unit-level activities are assigned using machine hours
The costs of batch-level activities are assigned using number of setups.
The costs of facility-level activities are assigned using machine hours.
Required:

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Definitions:

Diagnostic

Pertaining to or aiding in the detection and identification of a disease, condition, or distinctive characteristics.

Binge Drinking

The consumption of an excessive amount of alcohol in a short period of time, typically defined as five or more drinks for males, and four or more drinks for females, in about two hours.

Interpersonal Skills

Interpersonal skills are the abilities required to effectively communicate, interact, and work with individuals and groups.

Alcohol Consumption

The act of drinking beverages containing ethanol, which can have varying social, cultural, and health impacts depending on the quantity and frequency of consumption.