Capital cost Essay

Q1. Bob Richards, the production manager of Zychol Chemicals, in Houston, Texas, is preparing his quarterly report, which is to include a productivity analysis for his department. One of the inputs is production selective knowledge prepared by Sharon Walford, his operations analyst. The report, which she gave him this morning, showed the side by side(p) 2008 2009Production (units) 4,500 6,000Raw secular utilise (barrels of petroleum by-products) 700 900 Labor hours 22,000 28,000Capital greet applied to the department ($) $375,000 $620,000 Bob knew that his prod personify per hour had increased from an honest of $13 per hour to an number of $14 per hour, primarily due to a move by management to become more than competitive with a new club that had just opened a found in the area. He also knew that his average bell per barrel of raw material had increased from $320 to $360. He was concerned slightly the accounting procedures that increased his capital cost from $375,0 00 to $620,000, but earlier discussions with his boss suggested that thither was nothing that could be done around that on the wholeocation. Bob wondered if his productivity had increased at all. He called Sharon into the office and conveyed the above information to her and asked her to prepare this part of the report.Prepare the productivity part of the report for Mr. Richards. He in all likelihood expects some analysis of productivity inputs for all factors, as well as a multifactor analysis for both years with the flip in productivity (up or down) and the bar noted. Managements expectation for departments such(prenominal) as Mr. Richardss is an annual productivity increase of 5%. Did he top this goal? Q2. Samsang Manufacturing Inc., manufacturers DVD players for commercial use. Holland Samsang, prexy of Samsang Manufacturing Inc., is contemplating producing DVD players for home use. The activities necessary to skeleton an experimental model and related data are given in the succeeding(a) table Activity Normal period (weeks) Crash time (weeks) Normal cost ($) Crash cost ($) Immediate predecessor(s) A 3 2 1000 1600