The information related to an assembly line process at a manufacturing company is shown in FigureQ2. Workstation D is the last work process with the process time of 30 sec/unit and 2% rejectionrate. Other information related to the process is shown in the figure. The demand for the product is37000 units per month. The company is operating for 24 days per month and 8 hours per day.(a) Evaluate the problem and determine the rate of components expected to be rejected fromprocess C in units per hour.(b) Re-evaluate the overall problem and propose the number of machines required at workstationВ.SS62%SS51%SS42%S7SS3SS2S5%2%3%128 sec/unit25 sec/unitABDOutput5%4%3%2%131.739 sec/unit30 sec/unit103.4sec/umtsec/unitFigure 2

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Description: The information related to an assembly line process at a manufacturing company is shown in FigureQ2. Workstation D is the last work process with the process time of 30 sec/unit and 2% rejectionrate. Other information related to the process is shown

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(a) Evaluate the problem and determine the rate of components expected to be rejected from process C in units per hour.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

The information related to an assembly line process at a manufacturing company is shown in Figure
Q2. Workstation D is the last work process with the process time of 30 sec/unit and 2% rejection
rate. Other information related to the process is shown in the figure. The demand for the product is
37000 units per month. The company is operating for 24 days per month and 8 hours per day.
(a) Evaluate the problem and determine the rate of components expected to be rejected from
process C in units per hour.
(b) Re-evaluate the overall problem and propose the number of machines required at workstation
В.
SS6
2%
SS5
1%
SS4
2%
S7
SS3
SS2
S
5%
2%
3%
1
28 sec/unit
25 sec/unit
A
B
D
Output
5%
4%
3%
2%
131.7
39 sec/unit
30 sec/unit
103.4
sec/umt
sec/unit
Figure 2

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