Jefferson Company's demand for its only product 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) Required: 7,654 minutes 8,900 minutes 10.08 units per minute 12.00 units per minute 13,410 units 14,900 units 1. Compute the utilization rate. (Round your answer to 2 decimal places.) 2. Compute the efficiency rate. (Round your answer to 2 decimal places.) 3. Compute the quality rate. (Round your answer to 2 decimal places.) 4. Compute the overall equipment effectiveness (OEE). (Do not round intermediate calculations. Round your final answer to 3 decimal places.) Utilization rate Efficiency rate Quality rate Overall equipment effectiveness

Jefferson Company's demand for its only product 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) Required: 7,654 minutes 8,900 minutes 10.08 units per minute 12.00 units per minute 13,410 units 14,900 units 1. Compute the utilization rate. (Round your answer to 2 decimal places.) 2. Compute the efficiency rate. (Round your answer to 2 decimal places.) 3. Compute the quality rate. (Round your answer to 2 decimal places.) 4. Compute the overall equipment effectiveness (OEE). (Do not round intermediate calculations. Round your final answer to 3 decimal places.) Utilization rate Efficiency rate Quality rate Overall equipment effectiveness

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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nik.9 Birch Company normally produces and sells 49,000 units of RG-6 each month. The selling price is $30 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $195,000 per month, and fixed selling costs total $46,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company’s sales to temporarily drop to only 9,000 units per month. Birch Company estimates the strikes will last for two months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing its own plant during the strike, which would reduce fixed manufacturing overhead costs by $40,000 per month and fixed selling costs by 10%. Start-up costs at the end of the shutdown would total $15,000. Because Birch Company uses Lean Production methods, no inventories are on hand. Required: What is the financial advantage (disadvantage) if Birch closes its own plant…
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