Question # 1
The table for current production, Mike and Ike’s plan is given below:
Current Process Mikes Plan Ike's Plan
Regular Shirts Regular & Custom Shirts Regular Shirts Custom Shirts
Actual Cycle Time (min/shirt) 0.5 0.5 0.67 3.9
Manufacturing Lead Time (days) 12.25 2.06 12.58 0.41
WIP inventory (shirts) 11760 1980 9060 50
Production Capacity (Shirts/day) 960 960 720 123
Current Production(Shirts/day) 800 900 800 100
Capacity utilization 83.33% 93.75% 111.11% 81.25%
Direct Labor Content (min/shirt) 25.76 25.79 25.76 26.01
Actual Labor Time 20608 23209 20608 2601
Available Labor Time (min) 30720 31200 23520 7680
Direct Labor Utilization 67.08% 74.39% 87.62% 33.87%
Direct Labor Cost ($/Shirt) 3.84 3.47 3.33 7.68
Indirect Labor 0.66 0.66 0.66 &nb ...