Just in time inventory make to order10/2/2023 Available machine and labor time for each of the next 6 months is listed below. ![]() Some of the machines will be out of service for extensive overhauling. There are labor shortages in the community. Bakker's management is planning its production schedule for the next several months. Both labor and machine time are applied to the products. Product 611 613 615 Unit costs: Direct material $ 7 $ 13 $ 17 Direct labor 12 6 12 Variable overhead 27 20 25 Fixed overhead 15 10 32 Variable selling 3 2 4 Unit selling price $196 $123 $167 Question: 7 What is the excess (deficiency) for machine hours?įact Pattern: Bakker Industries sells three products (Products 611, 613, and 615) that it manufactures in a factory consisting of one department. The unit price and cost data valid for the next 6 months are presented below. Product Monthly Sales Volume (in units) 611 500 613 400 615 1,000 Bakker's inventory levels will not be increased or decreased during the next 6 months. Monthly Capacity Availability Normal machine capacity in machine hours 3,500 Capacity of machines being repaired in machine hours (500) Available machine capacity in machine hours 3,000 Labor capacity in direct labor hours 4,000 Available labor in direct labor hours 3,700 Labor and Machine Specifications per Unit of Product Product Labor and Machine Time 611 Direct labor hours 2 Machine hours 2 613 Direct labor hours 1 Machine hours 1 615 Direct labor hours 2 Machine hours 2 The Sales Department's forecast of product demand over the next 6 months is presented below. ![]() Fact Pattern: Bakker Industries sells three products (Products 611, 613, and 615) that it manufactures in a factory consisting of one department.
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