Jack Manufacturing wants to reduce the time between when an order is placed and when it is shipped. For the 2nd quarter, the following data were reported: Inspection Time = 0.5 days Wait Time (order to production start) = 12.7 days Process Time = 4.2 days Move Time = 1.5 days Queue Time = 4.3 days Required: 1. Compute throughput time. 2. Compute manufacturing cycle efficiency (MCE) for the quarter.

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
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 67P: Refer to the information for Farnsworth Company (p. 139) for the first 10 months of data on...
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Jack Manufacturing wants to reduce the time between when an order is
placed and when it is shipped. For the 2nd quarter, the following data were
reported:
Inspection Time = 0.5 days
Wait Time (order to production start) = 12.7 days
Process Time = 4.2 days
Move Time = 1.5 days
Queue Time = 4.3 days
Required:
1. Compute throughput time.
2. Compute manufacturing cycle efficiency (MCE) for the quarter.
Transcribed Image Text:Jack Manufacturing wants to reduce the time between when an order is placed and when it is shipped. For the 2nd quarter, the following data were reported: Inspection Time = 0.5 days Wait Time (order to production start) = 12.7 days Process Time = 4.2 days Move Time = 1.5 days Queue Time = 4.3 days Required: 1. Compute throughput time. 2. Compute manufacturing cycle efficiency (MCE) for the quarter.
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