## Solved Problems (See student companion site for Excel template.)

• Problem 1

The Fargoe Forge Company has collected the following data regarding the input and output of work into Work Center 222. Complete the partially filled in input/output chart.

Before You Begin:

This plan requires the completion of the input/output report. The planned input, actual input, planned output, and actual output are provided. Calculate the deviation by period (actual minus planned). Do this for both input and output and calculate the cumulative deviation for both. Finally, calculate the backlog. The backlog only changes when actual input is different from actual output. If actual input is greater than actual output, the backlog increases. When actual output is greater, the backlog is reduced.

Solution

Step 1 Calculate the period-by-period deviations. Subtract the planned input from the actual input. Subtract the planned output from the actual output. The results are shown in the spreadsheet.

Step 2 Calculate the cumulative deviation for input and output. Add the deviation for the current period to the cumulative deviation of the previous period. For example, in period 5, the cumulative deviation of the input is 75 hours of work (50 hours at the end of period 4, plus 25 hours in period 5). The cumulative deviations are shown in the spreadsheet.

Step 3 Calculate the backlog at Work Center 222. The backlog changes only when the actual input is different from the actual output in a period. The beginning ...

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