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Engineering Economics Prelim Quiz 1

The document describes two scenarios for completing a task. In the first scenario, an executive earns P600,000 annually and takes 4 hours to complete the task alone. If the executive delegates the task to their secretary, who earns P180,000 annually, it takes the executive 30 minutes to explain and 45 minutes to check the work, and the secretary 6 hours to complete. The cost to complete the task with the secretary is P737.50. Completing the task alone costs the executive P800.

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734 views3 pages

Engineering Economics Prelim Quiz 1

The document describes two scenarios for completing a task. In the first scenario, an executive earns P600,000 annually and takes 4 hours to complete the task alone. If the executive delegates the task to their secretary, who earns P180,000 annually, it takes the executive 30 minutes to explain and 45 minutes to check the work, and the secretary 6 hours to complete. The cost to complete the task with the secretary is P737.50. Completing the task alone costs the executive P800.

Uploaded by

Johnjacob Gerardo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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An executive receives an annual salary of P600, 000 and his secretary a salary of P180, 000.

A certain
task can be performed by the executive working alone in four hours. If he delegates the task to his
secretary wit will require him 30 minutes to explain the work a d another 45 minutes to check the work.
Due to the unfamiliarity of the secretary to do the task, it takes her an additional time of 6 hours after
being instructed. Considering salary cost only, determine the cost of performing the task by each
method, if the secretary works 2400 hours a year and the executive 3000 hours a year.

Cost of performing the task:Secretary working with executive

=P737.50

An executive receives an annual salary of P600, 000 and his secretary a salary of P180, 000. A certain
task can be performed by the executive working alone in four hours. If he delegates the task to his
secretary wit will require him 30 minutes to explain the work a d another 45 minutes to check the work.
Due to the unfamiliarity of the secretary to do the task, it takes her an additional time of 6 hours after
being instructed. Considering salary cost only, determine the cost of performing the task by each
method, if the secretary works 2400 hours a year and the executive 3000 hours a year.

Cost of performing the task:Executive alone

=P800

A cement grinding mill “A” with a capacity of 50 tons per hour utilizes forged steel grinding balls costing
P12, 000 per ton, which have a wear rate of 100 grams per ton cement milled. Another cement mill “B”
of the same capacity uses high chrome steel grinding balls costing P50, 000 per ton with wear rate of 20
grams per ton cement milled. Determine the more economical grinding mill, considering other factors to
be the same.

Selection:

=Therefore, Mill B is more economical than Mill A


An industrial engineer has designed two alternative methods of accomplishing a production job. Both
methods involve the acquisition of the same working place and other capital equipment to be used for
this job only. Method A calls for a crew consisting of three men each costing P30000 per hour. This
method will result in the production of 10 units per hour of which two will be rejects.

Method B calls for a crew of two men each costing P35.00 per hour and should result in the production
of eight units per hour of which one will be reject.

The cost of the direct material lost in each reject is P20.00. If a certain total number of units is to be
produced, find which method is more economical.

Method A:

=Per unit cost =16.25

A cement grinding mill “A” with a capacity of 50 tons per hour utilizes forged steel grinding balls costing
P12, 000 per ton, which have a wear rate of 100 grams per ton cement milled. Another cement mill “B”
of the same capacity uses high chrome steel grinding balls costing P50, 000 per ton with wear rate of 20
grams per ton cement milled. Determine the more economical grinding mill, considering other factors to
be the same.

For Mill B:

=P50/hour

An industrial engineer has designed two alternative methods of accomplishing a production job. Both
methods involve the acquisition of the same working place and other capital equipment to be used for
this job only. Method A calls for a crew consisting of three men each costing P30000 per hour. This
method will result in the production of 10 units per hour of which two will be rejects.

Method B calls for a crew of two men each costing P35.00 per hour and should result in the production
of eight units per hour of which one will be reject.

The cost of the direct material lost in each reject is P20.00. If a certain total number of units is to be
produced, find which method is more economical.

Method B:

=Per unit cost = 12.86


A cement grinding mill “A” with a capacity of 50 tons per hour utilizes forged steel grinding balls costing
P12, 000 per ton, which have a wear rate of 100 grams per ton cement milled. Another cement mill “B”
of the same capacity uses high chrome steel grinding balls costing P50, 000 per ton with wear rate of 20
grams per ton cement milled. Determine the more economical grinding mill, considering other factors to
be the same.

For Mill A:

P60/hour

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