Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. vander belt manufacturing, inc., is considering re

Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates...

70.2K

Verified Solution

Question

Accounting

Vander Belt Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization:

Before the change

After the change

Total annual sales

$250,000

$375,000

Costs as percentage of sales:

Direct materials

20%

17%

Direct labor

8%

7%

Manufacturing Support costs

12%

6%

Workminusinminusprocess

inventory

$50,000

$ 40,000

Inventory carrying costs are estimated to be 11% per year.

As a result of the layout reorganization, reduced levels of

workminusinminusprocess

inventory are projected to decrease inventory carrying costs annually by:

A.

$5,500.

B.

$ 1,100.

C.

$ 3,750.

D.

$ 4,400.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Find the 4th roots of i. Sketch them in an Argand diagram.

Biology
1.2K views

Describe the functions of the common structures of bacteria and archaea and describe distinguishing characteristics between Gram-negative...

Chemistry
1.2K views

1. A 1.189 g sample contains only vitamin C (C6H8O6) and sucralose (C12H19Cl3O8). When the sample...

Physics
1.2K views

An asteroid is discovered to have a tiny moon that orbits it in a circular path...

Accounting
1.2K views

Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use...

Basic Math
1.2K views

99 Determine whether the vector field F x y Y 1 x is conservative or...

Calculus
1.2K views

What is the exact value of tan (?/12)?-(2-?3)-(2+?3)2-?32+?3

Calculus
1.2K views

ll in the blank with an appropriate word or phrase sample that consists of a...

Calculus
1.2K views

We have determined that lim f x 16c 12 and X 4 We can use...

Algebra
1.2K views

Solve the linear inequality Express the solution set using set builder and interval notation Graph...

Accounting
1.2K views

Now assume that Rockers's sales are collected as follows: Rockers expects total sales of $700,500...

Accounting
1.2K views

The following information relates to the debt securities investments of Splish Company. 1. On February...