Engines Corp

Essay

Engines Corp. builds two different types of motors in three departments. Historically, department X uses 20%, department Y uses 50%, and department Z uses 30% of direct labor and machine time, respectively. In the next quarter, demand for Model A is expected to be 40,000 units, and demand for Model B is expected to be for 50,000 units. The CPOPF planning factors are: direct labor for Model A = 0.667 hrs./unit, machine time for Model A = 1.75 hrs./unit, direct labor for Model B = 1.087 hrs./unit, machine time for Model B = 0.261 hrs./unit. Calculate the amount of labor and machine time that will need to be allocated to each of the three departments next quarter.