Transcribed Image Text
In: AccountingFiberform Industries produces a line of motorboats. The assemblydepartment programs computerized equipment to shape and...Fiberform Industries produces a line of motorboats. The assemblydepartment programs computerized equipment to shape and bend themetal railings for each boat. This equipment is capable ofproducing 40 railings per hour. The department typically producesonly 30 railings per hour. The plant operates two (8-hour) shifts,6 days a week. The shape and bend of the railings are critical, andthe firm currently discards 9,600 completed railings a year becauseof poor shape and bend. The plant is closed for 12 vacation daysand 10 holidays per year. The equipment is also shut down for oneday every 2 months for regular maintenance. The assemblydepartment’s average production of good railings for the past 5years is 130,000 a year. The department expected to produce 120,000good boat railings this year. However, the actual production was105,000 railings. For this problem, assume the 365th day is aSunday. Further assume any difference between actual sales andproduction under current conditions is idle marketablecapacity.1. Using the CAM-I model, determine the amount of equipment timethat falls into each of the following categories: (i) rated; (ii)idle; (iii) nonproductive; and (iv) productive. As part of yoursolution attempt to determine what types of idle and nonproductivecapacity exists. (Note: You may have to back into one type of idlecapacity.)