fect-free output this week tal output this week (including defects) uired: 52,920 units 75,600 units Song fan Bone and C melle+

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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Please help with 1a-2a.

Kilmer Company has demand for its only product that exceeds its manufacturing capacity. The company
provided the following information for the machine whose limited capacity is prohibiting the company from
producing and selling additional units.
Actual run time this week
Machine time available per week
Actual run rate this week
Ideal run rate.
Defect-free output this week
Total output this week (including defects)
1-a. Utilization rate
1-b. Efficiency rate.
1-c. Quality rate
1-d. Overall equipment effectiveness
2-a. Utilization loss in units
Required:
1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: (Do not
round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the
nearest whole number.)
2-b. Efficiency loss in units
2-c. Quality loss in units
13,500 minutes
15,000 minutes
18,900
22,680
5.60 units per minute
7 units per minute.
52,920 units
75,600 units
Transcribed Image Text:Kilmer Company has demand for its only product that exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week Machine time available per week Actual run rate this week Ideal run rate. Defect-free output this week Total output this week (including defects) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 2-a. Utilization loss in units Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: (Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number.) 2-b. Efficiency loss in units 2-c. Quality loss in units 13,500 minutes 15,000 minutes 18,900 22,680 5.60 units per minute 7 units per minute. 52,920 units 75,600 units
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