During the most recent month at Schwab Corporation, queue time was 10.6 days, inspection time was 1.7 day, process time was 2.7 days, wait time was 12.5 days, and move time was 3.5 day. Required: a. Compute the throughput time. b. Compute the manufacturing cycle efficiency (MCE). c. What percentage of the production time is spent in non-value-added activities? d. Compute the delivery cycle time. a. Throughput time b. MCE c. Percentage of non-value-added activities d. Delivery cycle time days % % days

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 31BEB: Gumbrecht Company has the following departmental manufacturing layout for one of its plants: A...
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During the most recent month at Schwab Corporation, queue time was 10.6 days, inspection time was 1.7 day, process time was 2.7
days, wait time was 12.5 days, and move time was 3.5 day.
Required:
a. Compute the throughput time.
b. Compute the manufacturing cycle efficiency (MCE).
c. What percentage of the production time is spent in non-value-added activities?
d. Compute the delivery cycle time.
a. Throughput time
b. MCE
c. Percentage of non-value-added activities
d. Delivery cycle time
days
%
%
days
Transcribed Image Text:During the most recent month at Schwab Corporation, queue time was 10.6 days, inspection time was 1.7 day, process time was 2.7 days, wait time was 12.5 days, and move time was 3.5 day. Required: a. Compute the throughput time. b. Compute the manufacturing cycle efficiency (MCE). c. What percentage of the production time is spent in non-value-added activities? d. Compute the delivery cycle time. a. Throughput time b. MCE c. Percentage of non-value-added activities d. Delivery cycle time days % % days
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