Compute Lead TimeJackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach,the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 90 parts. A partrequires 4 minutes in milling and 8 minutes in finishing. The move time between the two operations for a complete batchis 9 minutes.Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. Theoperating time is unchanged; however, the batch size is reduced to 3 parts and the move time is eliminated.Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional andlean manufacturing methods. If required, round percentages to one decimal place.Traditional Philosophy Lean Manufacturing Philosophymin.Value-added time.Non-value-added timeTotal lead timeValue-added ratio (as a percent)minminmin%0000minmin%

Lead time is essential for reducing wait times, maximizing stock levels, and raising client…

Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the the parts are machined through two processes: milling and finishing. Parts are produc requires 4 minutes in milling and 8 minutes in finishing. The move time between the

Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the the parts are machined through two processes: milling and finishing. Parts are produc requires 4 minutes in milling and 8 minutes in finishing. The move time between the

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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The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 20 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $2.75 per part Machining Machine hours $3.00 per machine hour Assembling Number of parts $1.50 per part Packaging Number of finished units $2.75 per finished unit What is the cost of assembling per chair?
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400
UPVOTE WILL BE GIVEN! INPUT THE COMPLETE SOLUTIONS. YOU MAY USE EXCEL. BOX THE FINAL ANSWERS. d. How much is the total cost for completed units? e. How much is the total cost to be accounted for?
Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 80 parts. A part requires 2 minutes in milling and 6 minutes in finishing. The move time between the two operations for a complete batch is 7 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 5 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time min min Non-value-added time min min Total lead time min min Value-added ratio (as a percent) % 0%
Cycle Time, Velocity, Product Costing Mulhall, Inc., has a JIT system in place. Each manufacturing cell is dedicated to the production of a single product or major subassembly. One cell, dedicated to the production of mopeds, has four operations: machining, finishing, assembly, and qualifying (testing). The machining process is automated, using computers. In this process, the model’s frame and engine are constructed. In finishing, the frame is sandblasted, buffed, and painted. In assembly, the frame and engine are assembled. Finally, each model is tested to ensure operational capability. For the coming year, the moped cell has the following budgeted costs and cell time (both at theoretical capacity): Budgeted conversion costs $5,541,120 Budgeted materials $18,668,000 Cell time 35,520 Theoretical output 17,760 models During the year, the following actual results were obtained: Actual conversion costs $5,541,120 Actual materials $4,009,000 Actual cell time…
I need help finding the values for part 4 (cost of units started and completed in march) and part 5 (cost of the ending work in process). Thank you!
Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: Brass Gold Units Planed 750 150 Material Moves 400 100 Machine Setups 500 750 Direct Labor Hours 600 1,100 The estimated overhead for the material cost pool is estimated as $13,000, and the estimate for the machine setup pool is $40,000. A. Calculate the allocation rate per unit of brass and per unit of gold using the traditional method? Round intermediate calculations and final answers t two decimal places. Brass 24.94 228.63 B. Calculate the allocation rate per unit of brass and per unit of gold using the activity-based costing method? Round intermediate calculations and final answers to two decimal places. Gold Brass Allocation Rate per Unit Gold Allocation Rate per Unit SA 35.2 177.33
Berrian Company manufactures car seats in its Tulsa plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. Data for the assembly department for October 2017 are as follows: Read the requirements3. Requirement 1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule. Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Work in process beginning Started during current period To account for Completed and transferred out during current period Work in process, ending Accounted for Work done to date Requirement 2. What issues should the manager focus on when reviewing the equivalent-unit calculations? To show better…
Vermont Instruments manufactures two models of calculators. The fiancé model is the Fin-X and the scientific model is the Sc-X. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is in the cost of the parts. The following data are available for June: Fin-X Sci-X Total Number of units 12,000 40,000 52,000 Parts cost per unit $25 $23 Other costs: Direct labor $53,000 Indirect materials 18,000 Overhead…
Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 50 parts. A part requires 5 minutes in milling and 10 minutes in finishing. The move time between the two operations for a complete batch is 11 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 6 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time ? min ? min Non-value-added time ? min ? min Total lead time ? min ? min Value-added ratio…
Life Force Fitness, Inc., assembles and sells treadmills. Activity-based product information for each treadmill is as follows: ETT Activity-Base Usage (hrs. per unit) Activity Rate per Hour Activity Motor assembly Activity Cost $30.00 1.50 $20 Final assembly Testing 1.00 18 18.00 0.25 22 5.50 Rework 0.40 22 8.80 Moving Activity cost per unit 3.00 $65.30 0.20 15 All of the activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order to remain competitive. Rework involves disassembling and repairing a unit that fails testing. Not all units require rework, but the average is 0.40 hour per unit. Presently, the testing is done on the completed assembly; but much of the rework has been related to motors, which can be tested independently prior to adding the motor to the treadmill during final assembly. Thus, motor issues can be diagnosed and solved without having to disassemble the complete treadmill. This change will reduce the average rework…
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