Question

1.4(A) A machine tool is used to machine parts in batches. In one batch of interest, the starting piece is a casting that costs = $6,00 Each, Batch quantity =

30. The actual machining time in the operation=6.86 min. Time to load and unload Each work piece = 3.0 min. Cost of the cutting tool = $3.00, and E achtool must be changed every 10 pieces. Tool change time = 2.5 min. Setup time for the batch = 1.75 hr.Hourly wage rate of the operator = $15.00/hr, and the applicable labor overhead rate = 60%. Hourly equipment cost rate = $20.00/hr, which includes overhead. Assume availability = 100% and scrap rate =0.

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