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university of southern california Operations And Supply Chain Management Assignment Help - Follete Inc.


Question - Follete Inc. operates at capacity and makes plastic combs and hairbrushes. Although the combs and
brushes are a matching set, they are sold individually and so the sales mix is not 1:1. Follette Inc. is
planning its annual budget for fiscal year 2011. Information for 2011 follows:
Input Prices
Direct materials
Plastic $ 0.20 per ounce
Bristles $ 0.50 per bunch
Direct manufacturing labor$12 per direct manufacturing labor-hour
Folette Inc. accounts for direct materials using a FIFO cost flow.
Folette Inc. uses a FIFO cost flow assumption for finished goods inventory. Combs are manufactured
in batches of 200, and brushes are manufactured in batches of 100. It takes 20 minutes to set up for a
batch of combs, and one hour to set up ...Read More

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