Assume the same data for PARE Company in Illustrative Problem 2 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 6, 750 P7 Direct labor hours 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 Inspection time 1.5 Move time .25 Queue time .80
Assume the same data for PARE Company in Illustrative Problem 2 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 6, 750 P7 Direct labor hours 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 Inspection time 1.5 Move time .25 Queue time .80
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- Compute for throughput time
- Compute for Value added time
Transcribed Image Text:Assume the same data for PARE Company in Illustrative Problem 2 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
6, 750
P 7
Direct labor hours
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
1.5
Move time
.25
Queue time
.80
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