Hiawatha Hydrant Company manufactures fire hydrants in Oswego, New York. The following information pertains to operations duringMay.Processing time (average per batch)Inspection time (average per batch)Waiting time (average per batch)Move time (average per batch)Units per batch4.40 hours0.35 hour0.35 hour0.35 hour21 unitsRequired:1. Compute the manufacturing cycle efficiency. (Do not round intermediate calculations. Round your final answer to the nearestwhole percent.)2. Compute the manufacturing cycle time. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)3. Compute the velocity. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)1. Manufacturing cycle efficiency2.Manufacturing cycle time3.Velocity%hour per unitunits per hour

1. Manufacturing Cycle Efficiency (MCE)Manufacturing cycle efficiency (MCE) is a metric used in…

Answered: Hiawatha Hydrant Company manufactures…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

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Compute (a) manufacturing cycle time and (b) manufacturing cycle efficiency using the following information from a manufacturing company. Process time. 15.0 minutes Move time. 6.4 minutes Inspection time. 2.0 minutes Wait time. 36.6 minutes
Subject - account Please help me. Thankyou.
Larsen, Inc., produces two types of electronic parts and has provided the following data: There are four activities: machining, setting up, testing, and purchasing. Required: 1. Calculate the activity consumption ratios for each product. 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). When compared with the activity ratios, what can you say about the relative accuracy of a plantwide rate? Which product is undercosted? 3. What if the machine hours were used for the plantwide rate? Would this remove the cost distortion of a plantwide rate?
The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes represent production in units, machine hours, or direct labor hours. In each case, the zero point is at the intersection of the two axes. Each graph may be used no more than once. Required: Select the graph that matches the lettered cost described here. a. Depreciation of equipmentthe amount of depreciation charged is computed based on the number of machine hours that the equipment was operated. b. Electricity billflat fixed charge, plus a variable cost after a certain number of kilowatt hours are used. c. City water billcomputed as follows: d. Depreciation of equipmentthe amount is computed by the straight-line method. e. Rent on a factory building donated by the citythe agreement calls for a fixed fee payment, unless 200,000 labor hours are worked, in which case no rent need be paid. f. Salaries of repair workersone repair worker is needed for every 1,000 machine hours or less (i.e., 0 to 1,000 hours requires one repair worker, 1,001 to 2,000 hours requires two repair workers, etc.).
Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: aCalculated using number of dies as the single unit-level driver. bCalculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. 2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome. 3. What if activities 1, 2, 5, and 8 each had a cost of 650,000 and the remaining activities had a cost of 50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach. Comment on the implications for the approximately relevant approach.
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Vandenheuvel Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Move time Wait time Queue time Process time Inspection time The manufacturing cycle efficiency (MCE) was closest to: (Round your intermediate calculations to 1 decimal place.) Multiple Choice O 0.11 0.19 0.31 Hours 3.3 19.7 9.9 1.7 0.9 0.05
Simkin Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Wait time Process time Inspection time Move time. Queue time The manufacturing cycle efficiency (MCE) was closest to: (Round your intermediate calculations to 1 decimal place.) Multiple Choice O 0.51 O 0.10 0.15 Hours 20.8 2.5 0.3 2.9 5.0 O 0.23
Oakwood Creations Company makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Berkley model pedestal. The standards follow, along with the cost accountant's determination of current labor pay rates: Worktype 1 Worktype 2 Worktype 3 0.16 hour @ $12.28 per hour 0.34 hour @ $10.93 per hour 0.63 hour @ $19.57 per hour Required: a. Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. b. Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Complete this question by entering your answers in the tabs below. Required A Required B Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. Note: Do not round intermediate calculations. Round final answer to 2 decimal places. Direct labor cost
Oakwood Creations Company makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Berkley model pedestal. The standards follow, along with the cost accountant's determination of current labor pay rates: Worktype 1 Worktype 2 Worktype 3 0.18 hour @ $12.31 per hour 0.32 hour @ $10.89 per hour 0.62 hour @ $19.65 per hour Required: a. Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. b. Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Complete this question by entering your answers in the tabs below. Required A Required B Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing…
James Smith has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $ 602,500 is based on 30,125 machine hours. In an initial analysis of overhead costs, James has identified the following activity cost pools. Cost Pool Expected Cost Expected Activities Product assembly $ 340,000 34,000 machine hours Machine setup and calibration 175,000 3,500 setups Product inspection 37,500 1,250 batches Raw materials storage 50,000 200,000 pounds $ 602,500
1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. 3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE. 3-b. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE.

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