PRODUCTION INVENTORY. The Mobile Cabinet Company produces cabinets used in mobile and motor homes. Cabinets produced for motor homes are smaller and made from less expensive materials than are those...

PRODUCTION INVENTORY. The Mobile Cabinet Company produces cabinets used in mobile and motor homes. Cabinets produced for motor homes are smaller and made from less expensive materials than are those for mobile homes. The home office in Ames, Iowa, has just distributed to its individual manufacturing centers the production quotas required during the upcoming summer quarter. The scheduled production requirements for the Lexington, Kentucky, plant are given in the following table.

Each motor home cabinet requires three man-hours to produce, whereas each mobile home cabinet requires five man-hours. Labor rates normally average $18 per hour. During July and August, however, when Mobile employs many part-time workers, labor rates average