Stage 1 Stage 2

Labour hours first shif 15,000 10,000

First shif: Hourly rate 8.5 9.25
Labour hours second shif 13,500 9,000
Second shif: Hourly rate 9.35 10.175
Total Labour Hours 28,500 19,000

Water Oil Colours

Pounds 200,000 50,000 7,500
Rate 1 1.5 3

Cost per Carton Face Cream Body Cream Hand Cream

Stage 1 12.75 15.30 8.50
First Shif
Stage 2 7.40 9.25 4.63
Stage 1 14.03 16.83 9.35
Second Shif
Stage 2 8.14 10.18 5.09

Water 8 6 7
Oil 1.5 4.5 3
Scents and colours 1.5 0.9 1.2
Emulsifiers 1 1.4 1.2
Total 12.00 12.80 12.40

Cost per Carton Shif 1 Shif 2 Outsource

Face 32.15 34.17 40
Body 37.35 39.81 55
Hand 25.53 26.84 50
 Face Cream
Cases 12,000
Labour (hours/carton)
Stage 1 1.50
Stage 2 0.80
Labour hours
Stage 1 18,000
Stage 2 9,600

Materials (pounds/carton)
Emulsifiers Water 8
15,000 Oil 1
2 Scents and colours 0.5
Emulsifiers 0.5

Required Materials
Water 96,000
Oil 12,000
Scents and colours 6,000
Emulsifiers 6,000

Remaining Labour Hours

Stage 1 10,500
Stage 2 10,000

Hand Cream
Shif 1 Stage 1 15,000
% Increase Shif 2 Stage 1 3,000
17.08 Shif 1 Stage 2 9,000
38.17 Material 18,000
Total

Remaining Labour
Stage 1 -
Stage 2 1,000
Stage 1 10,500
Stage 2 9,000
Material
Total
Outsourcing
Face 480000
Body 385000

TOTAL Total 1,366,805

 Body Cream Hand Cream
8,000 18,000

1.8 1
1 0.5

14,400 18,000
8,000 9,000

6 7
3 2
0.3 0.4
0.7 0.6

Total Quantity Capacity Remaining Cartons

48,000 126,000 270,000 74,000
24,000 36,000 72,000 14,000
2,400 7,200 15,600 300 1,000
5,600 10,800 22,400 4,200

18,000
9,000

Cost
127,500
28,050
83,250
223,200
462,000

Body Labour Hours Cost of Labour

1,800 16,830
1,000 10,175
12800
39,805