Indy Company has the following data for one of its manufacturing plants: Maximum units produced in a quarter (3-month period): 250,000 units Actual units produced in a quarter (3-month period): 192,000 units Productive hours in one quarter: 25,000 hours The actual cycle time for Indy Company is 7.81 minutes, and the theoretical cycle time is 6 minutes. Required: 1. Calculate the amount of processing time and the amount of nonprocessing time. If required, round your answers to two decimal places. Processing time minutes Nonprocessing time minutes 2. Calculate the MCE. If required, round your answer to nearest whole number. %

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Calculating Manufacturing Cycle Efficiency
Indy Company has the following data for one of its manufacturing plants:
Maximum units produced in a quarter (3-month period): 250,000 units
Actual units produced in a quarter (3-month period): 192,000 units
Productive hours in one quarter: 25,000 hours
The actual cycle time for Indy Company is 7.81 minutes, and the theoretical cycle time is 6 minutes.
Required:
1. Calculate the amount
processing time and the amount of nonprocessing time.
required, rour
your answers to
wo
ecimal places.
Processing time
minutes
Nonprocessing time
minutes
2. Calculate the MCE. If required, round your answer to nearest whole number.
%
Transcribed Image Text:Calculating Manufacturing Cycle Efficiency Indy Company has the following data for one of its manufacturing plants: Maximum units produced in a quarter (3-month period): 250,000 units Actual units produced in a quarter (3-month period): 192,000 units Productive hours in one quarter: 25,000 hours The actual cycle time for Indy Company is 7.81 minutes, and the theoretical cycle time is 6 minutes. Required: 1. Calculate the amount processing time and the amount of nonprocessing time. required, rour your answers to wo ecimal places. Processing time minutes Nonprocessing time minutes 2. Calculate the MCE. If required, round your answer to nearest whole number. %
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