Just need efficiency rate and overall equipment effectiveness Jefferson Company's demand for its only product exceeds its manufacturing capacity. The company providedthe following information for the machine whose limited capacity is prohibiting the company from producingand selling additional units.Actual run time this weekMachine time available per weekActual run rate this weekIdeal run rateDefect-free output this weekTotal output this week (including defects)7,020 minutes9,000 minutes9.35 units per minute11.00 units per minute18,000 units20,000 unitsRequired: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 yourfinal answer to 3 decimal places.)Utilization rate0.78Efficiency rateQuality rate0.90Overall equipment effectiveness

efficiency rate = actual run rate / ideal run rate = 9.35/11 = .85

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 7,020 minutes 9,000 minutes 9.35 units per minute

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 7,020 minutes 9,000 minutes 9.35 units per minute

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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Just need efficiency rate and 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)
7,020 minutes
9,000 minutes
9.35 units per minute
11.00 units per minute
18,000 units
20,000 units
Required:
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
0.78
Efficiency rate
Quality rate
0.90
Overall equipment effectiveness

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