Volcker, Inc. manufactures recliners for the hotel industry. It has two products, the Heater and the Massager, and total overhead is $1,580,000. The company plans to manufacture 400 Heaters and 100 Massagers this year. In manufacturing the recliners, the company must perform 600 material moves for the Heater and 400 for the Massager; it processes 900 purchase orders for the Heater and 700 for the Massager; and the company’s employees work 1,400 direct labor hours on the Heater product and 3,400 on the Massager. Volcker’s total material handling costs are $1,000,000 and its total processing costs are $580,000. Using ABC, how much overhead would be assigned to the Heater product? The answer is $926,250. How do you get this answer? 

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You are a project manager for your company. Your boss, the Vice President of Operations, assigned you a task at the beginning of the year. You must provide a recommendation for reducing costs in your department’s operations by 20% in accordance with the company’s goals for the new year. Your boss has asked you to identify the roles and skills of people who should be members of your team to assist in the steps to craft this recommendation. You sent a memo to your boss with the proposed tasks, team, and milestones.You are provided a dataset for this assignment. This Big Data Excel dataset contains all of the costs that your department incurred last year, with a breakdown by area within your department, month by month. You are also provided some numbers of aspects that make up the costs; in other words, errors and the costs to correct the errors, as well as costs for operations and administrative costs.For this assignment, you must “eyeball” the data to continue the task assigned by your boss. (You will complete the formal SAS® analysis in the IP assignment.) Act as though you are calling a project meeting with the team of business analysts, Six Sigma specialists, and department representatives who will help you with the data analysis. In this Discussion Board, you must provide your hypothesis of 2 possible opportunities that you have identified to reduce costs. You must research “Operations Cost Reduction Opportunities” in the CTU library, in SAS, and on the Internet and provide references and the practical examples of the cost-reduction opportunities of similar companies, perhaps from an industry similar to your chosen industry (you have chosen a company and industry for the completion of the assignments in this course session).In your Discussion Board response, you must provide enough information to solicit meaningful feedback from your teammates (i.e., feedback from your classmates). You must provide the following:Company name (existing company)  Industry  Type of operations and problems you have observed in the dataset  2 suggested cost-reduction ideas and real-life examples  ReferencesYou must provide feedback to at least 2 classmates from the perspective of you as their team member in that meeting. You must respond to your classmate by addressing the following:You must agree or disagree with one or both suggestions your classmate has provided in his or her Discussion Board post, and provide your reasoning.  If you have other ideas (maybe you are looking at a similar operation or industry), you should suggest another cost-reduction idea to your classmate.  Provide references.