Questions from Engineering

Q: The cost of equipment for manufacturing mineral products in a harsh environment

The cost of equipment for manufacturing mineral products in a harsh environment is $2.3 million. If the overall cost factor for this type of facility is 2.25, what is the estimated total plant cost?

Q: The total cost for a production plant that supplies hydrogen to the

The total cost for a production plant that supplies hydrogen to the refining industry is estimated at $55.4 million. The equipment is expected to cost $17.8 million. (a) What is the overall cost facto...

Q: A chemical engineer at Western Refining estimated the total cost for a

A chemical engineer at Western Refining estimated the total cost for a diesel fuel desulfurization system at $2.3 million. If the direct cost factor is 1.55 and the indirect cost factor is 0.43, what...

Q: The delivered equipment cost for a fully equipped CNC machining system is

The delivered equipment cost for a fully equipped CNC machining system is $1.6 million. The direct cost factor is 1.52 and the indirect cost factor is 0.31. Estimate the total plant cost if the indire...

Q: The six independent projects shown below are presented to you as an

The six independent projects shown below are presented to you as an engineer with Peyton Packing. There are capital budget constraints because the company always has more projects to engage in than it...

Q: During a major expansion in 2004, Douwalla’s Import Company developed a

During a major expansion in 2004, Douwalla’s Import Company developed a new processing line for which the delivered equipment cost was $1.75 million. This year, the board of directors decided to expan...

Q: The company you work for currently allocates insurance costs on the basis

The company you work for currently allocates insurance costs on the basis of cost per direct labor hour. This indirect cost component for the year is budgeted at $36,000. If the annual direct labor ho...

Q: A company has a processing department with 10 stations. Because of

A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is considered a separate cost center for IDC allocation. The remaining seven are...

Q: Identify the output and input variables in both the bottom-up

Identify the output and input variables in both the bottom-up and top-down strategies to cost estimation.

Q: Jet Green Airways historically distributes the indirect costs of lost and damaged

Jet Green Airways historically distributes the indirect costs of lost and damaged baggage to its three major hubs using a basis of annual number of flights in and out of each hub. Last year, $667,500...