1. A production machine was purchased six years ago for an installed price of $530,000. At that time, it was anticipated that the machine would last 10 years and be used 4000 hours per year. However, it is now in need of major repairs that will cost $125,000. If these repairs are made, the machine will last four more years, operating 4000 hours per year. Applicable overhead rate = 30%. Assume availability = 100%.

Determine the equipment cost rate for this machine.

2. A stamping press produces sheet-metal stampings in batches. The press is operated by a worker whose labor rate = $15.00/hr and applicable labor overhead rate = 42%. Cost rate of the press = $22.50/hr and applicable equipment overhead rate = 20%. In one job of interest, batch size = 400 stampings, and the time to set up the die in the press takes 75 min. The die cost $40,000 and is expected to last for 200,000 stampings. Each cycle in the operation, the starting blanks of sheet metal are manually loaded into the press, which takes 42 sec. The actual press stroke takes only 8 sec. Unloading the stamping from the press takes 13 sec. Cost of the starting blanks = $0.23/pc. The press operates 250 days per year, 7.5 hours per day, but the operator is paid for 8 hours per day. Assume availability = 100% and scrap rate = 0%.

Determine:
(a) cycle time,
(b) average production rate with and without setup time included, and
(c) cost per stamping produced.

3. In a long-running high-production operation, the starting work material cost = $0.65/pc, and cycle time = 1.28 min. Equipment cost rate = $44.00/hr, and labor cost rate = $28.00/hr. Both rates include overhead costs. Tooling cost = $0.05/pc. Availability of the production machine = 95%, and the scrap rate = 4%.

Determine:
(a) production rate and
(b) finished part cost.

4. Using the data from problem #3, solve for the production rate and part cost if the machine availability = 100% and scrap rate = 0%.