compute for throughput time

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 32P: More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for next...
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compute for throughput time

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
Actual
Sales units
8, 100
8, 400
Total market (units )
54, 000
P 6
60, 000
CM / unit
P 6.50
Compute for throughput time
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
Inspection time
1.5
Move time
.25
Queue time
.80
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 Actual Sales units 8, 100 8, 400 Total market (units ) 54, 000 P 6 60, 000 CM / unit P 6.50 Compute for throughput time 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 Inspection time 1.5 Move time .25 Queue time .80
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