Please post solution in same format as question. Thanks. Required:1. Compute the velocity (number of models per hour) that the cell can theoretically achieve. If required, round your answer to two decimal places.model per hourNow, compute the theoretical cycle time (number of minutes per model) that it takes to produce one model. In your calculations, do not round the theoretical velocity.minutes per model2. Compute the actual velocity and the actual cycle time. If required, round your actual velocity answer to three decimal places.model per hour8minutes per model3. Compute MCE. If required, round your answer to two decimal places.Actual velocityActual cycle timeComment on the efficiency of the operation.4. Compute the budgeted conversion cost per minute. If required, round your answer to the nearest cent.per minuteUsing this rate, compute the conversion cost per model if theoretical output is achieved.per modelUsing this measure, compute the conversion cost per model for actual output.per modelDoes this product costing approach provide an incentive for the cell manager to reduce cycle time? Cycle Time, Velocity, Product CostingMulhall, Inc., has a JIT system in place. Each manufacturing cell is dedicated to the production of a single product or major subassembly. One cell, dedicated to the production of mopeds, has four operations: machining, finishing, assembly, anqualifying (testing). The machining process is automated, using computers. In this process, the model's frame and engine are constructed. In finishing, the frame is sandblasted, buffed, and painted. In assembly, the frame and engine areassembled. Finally, each model is tested to ensure operational capability.For the coming year, the moped cell has the following budgeted costs and cell time (both at theoretical capacity):Budgeted conversion costs$8,791,680Budgeted materials$18,616,000Cell time38,560Theoretical output24,100 modelsDuring the year, the following actual results were obtained:Actual conversion costsActual materialsActual cell timeActual output$8,791,680$4,069,00038,560 hours19,280 modelsRequired:1. Compute the velocity (number of models per hour) that the cell can theoretically achieve. If required, round your answer to two decimal places.model per hourNow, compute the theoretical cycle time (number of minutes per model) that it takes to produce one model. In your calculations, do not round the theoretical velocity.minutes per model2. Compute the actual velocity and the actual cycle time. If required, round your actual velocity answer to three decimal places.Actual velocitymodel per hourActual cycle timeminutes per model3. Compute MCE. If required, round your answer to two decimal places.Comment on the efficiency of the operation.

1 .) Given Data:- Budgeted conversion costs = $8791,680 Budgeted materials =$18,616,000 Cell…

1. Compute the velocity (number of models per hour) that the cell can theoretically achieve. If required, round your answer to two decimal places. model per hour Now, compute the theoretical cycle time (number of minutes per model) that it takes to produce one model. In your calculations, do not round the theoretical velocity. minutes per model 2. Compute the actual velocity and the actual cycle time. If required, round your actual velocity answer to three decimal places. Actual velocity model per hour Actual cycle time minutes per model 3. Compute MCE. If required, round your answer to two decimal places. Comment on the efficiency of the operation. 4. Compute the budgeted conversion cost per minute. If required, round your answer to the nearest cent. per minute Using this rate, compute the conversion cost per model if theoretical output is achieved. $ per model Using this measure, compute the onversion cost per $ per model Does this product costing approach provide an incentive for the cell manager to reduce cycle time? del for actual output.

1. Compute the velocity (number of models per hour) that the cell can theoretically achieve. If required, round your answer to two decimal places. model per hour Now, compute the theoretical cycle time (number of minutes per model) that it takes to produce one model. In your calculations, do not round the theoretical velocity. minutes per model 2. Compute the actual velocity and the actual cycle time. If required, round your actual velocity answer to three decimal places. Actual velocity model per hour Actual cycle time minutes per model 3. Compute MCE. If required, round your answer to two decimal places. Comment on the efficiency of the operation. 4. Compute the budgeted conversion cost per minute. If required, round your answer to the nearest cent. per minute Using this rate, compute the conversion cost per model if theoretical output is achieved. $ per model Using this measure, compute the onversion cost per $ per model Does this product costing approach provide an incentive for the cell manager to reduce cycle time? del for actual output.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter13: The Balanced Scorecard: Strategic-based Control

Section: Chapter Questions

Problem 26P

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