Bisutti Cams is producing its Racing Camshaft models RC1 and RC2. It is a three-state process that involves collecting the appropriate items from inventory, assembling, and then inspecting them. Bisutti Cams is making its labor estimates for the next four quarters for the collecting, assembling and inspecting operations. The RC1 requires 5 hours of labor and the RC2 requires 2 hours. The collecting process uses 20% of its labor resources, the assembling uses 70%, and the inspecting uses 10%. The production schedule for the next four quarters is given below.

Calculate the labor hours required in the collecting, assembling, and inspecting processes for the next four quarters.

Quarter

Endproduct 1 2 3 4

RC I 100 120 200 140

RC 2 200 250 150 100

Bisutti Cams

The total Hours for collecting, assembling, and inspecting processes for the next four quarters for the two products are as follows.

Labor Hours required in the Four Quarters RC1

Collecting, 20% Assembling, 70% Inspecting processes 10%

Quarter 1 100 350 50

Quarter 2 120 420 60

Quarter 3 200 700 100

Quarter 4 140 490 70

Total Hrs. 560 1960 280

Labor Hours required in the Four Quarters RC2

Collecting, 20% Assembling, 70% Inspecting processes 10%

Quarter 1 80 280 40

Quarter 2 100 350 50

Quarter 3 60 210 30

Quarter 4 40 140 20

Total Hrs 280 980 140

Explanation:

Labor Hours required in the Four Quarters

Quarter

Endproduct 1 2 3 4

RC I 100 120 200 140

No of Hours Required 5 5 5 5

Total Hours Required 500 600 1000 700

Step 1) We multiply number of hours with the products in each quarter to get the total hours required.

RC 2 200 250 150 100

No of Hours Required 2 2 2 2

Total Hours Required For R2 400 500 300 200

Step 2) We find the collecting, assembling, and inspecting hours by applying the percentages to each quarter hour.

Labor Hours required in the First Quarter

RC1 RC2

Collecting, 20% 100 80

Assembling, 70% 350 280

Inspecting processes 10% 50 40

First Quarter 500 400

Labor Hours required in the Second Quarter

RC1 RC2

Collecting, 20% 120 100

Assembling, 70% 420 350

Inspecting processes 10% 60 50

Second Quarter 600 500

Labor Hours required in the Third Quarter

RC1 RC2

Collecting, 20% 200 60

Assembling, 70% 700 210

Inspecting processes 10% 100 30

Third Quarter 1000 300

Labor Hours required in the Fourth Quarter

RC1 RC2

Collecting, 20% 140 40

Assembling, 70% 490 140

Inspecting processes 10% 70 20

Fourth Quarter 700 200