Calculating Cycle Time and Velocity Indy Company has the following data for one of its manufacturing plants: Maximum units produced in a quarter (3-month period): 250,000 units Actual units produced in a quarter (3-month period): 204,000 units Productive hours in one quarter: 25,000 hours Required: 1. Compute the theoretical cycle time (in minutes). minutes per unit 2. Compute the actual cycle time (in minutes). Round your answer to two decimal places. minutes per unit 3. Compute the theoretical velocity in units per hour. units per hour 4. Compute the actual velocity in units per hour. Round your answer to two decimal places. units per hour

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculating Cycle Time and Velocity
Indy Company has the following data for one of its manufacturing plants:
Maximum units produced in a quarter (3-month period): 250,000 units
Actual units produced in a quarter (3-month period): 204,000 units
Productive hours in one quarter: 25,000 hours
Required:
1. Compute the theoretical cycle time (in minutes).
minutes per unit
2. Compute the actual cycle time (in minutes). Round your answer to two decimal places.
minutes per unit
3. Compute the theoretical velocity in units per hour.
units per hour
4. Compute the actual velocity in units per hour. Round your answer to two decimal places.
units per hour
Transcribed Image Text:Calculating Cycle Time and Velocity Indy Company has the following data for one of its manufacturing plants: Maximum units produced in a quarter (3-month period): 250,000 units Actual units produced in a quarter (3-month period): 204,000 units Productive hours in one quarter: 25,000 hours Required: 1. Compute the theoretical cycle time (in minutes). minutes per unit 2. Compute the actual cycle time (in minutes). Round your answer to two decimal places. minutes per unit 3. Compute the theoretical velocity in units per hour. units per hour 4. Compute the actual velocity in units per hour. Round your answer to two decimal places. units per hour
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