2021 Projected 8, 100 Actual Sales units 8, 400 Total market (units ) CM / unit 60, 000 P 6.50 54, 000 P6 Assume the same data for PARE Company and the actual data for the years 2021 are as follows: (Assume that production = units sold) 2021 P 53.75 Sales price/unit Materials used (kg) Materials cost / kg Direct labor hours 6, 750 P7 6, 480 Direct labor cost/hr P 32.50 PARE Company monitored the efficiency of processes from receiving customer orders until they are shipped to customers. Average times incurred per order processed are as follows: Time ( in days ) 2021 Wait time 4 Process time 2 Inspection time Move time 1.5 .25 Queue time .80
2021 Projected 8, 100 Actual Sales units 8, 400 Total market (units ) CM / unit 60, 000 P 6.50 54, 000 P6 Assume the same data for PARE Company and the actual data for the years 2021 are as follows: (Assume that production = units sold) 2021 P 53.75 Sales price/unit Materials used (kg) Materials cost / kg Direct labor hours 6, 750 P7 6, 480 Direct labor cost/hr P 32.50 PARE Company monitored the efficiency of processes from receiving customer orders until they are shipped to customers. Average times incurred per order processed are as follows: Time ( in days ) 2021 Wait time 4 Process time 2 Inspection time Move time 1.5 .25 Queue time .80
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Compute for Manufacturing Efficiency
Transcribed Image Text:PARE Company produces and sells a special powder named "CC". Actual and Projected sales units
and contribution margin per unit for the product for the year 2021 are as follows:
2021
Projected
8, 100
Actual
Sales units
8, 400
Total market (units )
54, 000
60, 000
CM / unit
P6
P 6.50
Assume the same data for PARE Company and the actual data for the years 2021 are as follows: (Assume
that production = units sold)
2021
P 53.75
Sales price/unit
Materials used (kg)
Materials cost / kg
Direct labor hours
Direct labor cost/hr
6, 750
P7
6, 480
P 32.50
PARE Company monitored the efficiency of processes from receiving customer orders until they are
shipped to customers. Average times incurred per order processed are as follows:
Time ( in days )
2021
Wait time
4
Process time
2.
Inspection time
Move time
1.5
.25
Queue time
.80
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