Problem 12-12 (Algo) Overall Equipment Effectiveness [LO12-3] Kilmer Company has demand for its only product that 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) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 2-a. Utilization loss in units Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: (Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number.) 2-b. Efficiency loss in units 2-c. Quality loss in units 8,400 minutes 14,000 minutes 4.20 units per minute 6 units per minute 60.00 70.00 89.98 37.78 5,600 15,120 3,528 31,752 units 35,280 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

j

Problem 12-12 (Algo) Overall Equipment Effectiveness [LO12-3]
Kilmer Company has demand for its only product that 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)
1-a. Utilization rate
1-b. Efficiency rate.
1-c. Quality rate
1-d. Overall equipment effectiveness
2-a. Utilization loss in units
2-b. Efficiency loss in units
2-c. Quality loss in units
60.00
70.00
89.98
37.78
8,400 minutes
14,000 minutes
Required:
1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: (Do not round intermediate
calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number.)
5,600
15,120
3,528
4.20 units per minute
6 units per minute
31,752 units
35,280 units
Transcribed Image Text:Problem 12-12 (Algo) Overall Equipment Effectiveness [LO12-3] Kilmer Company has demand for its only product that 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) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 2-a. Utilization loss in units 2-b. Efficiency loss in units 2-c. Quality loss in units 60.00 70.00 89.98 37.78 8,400 minutes 14,000 minutes Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: (Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number.) 5,600 15,120 3,528 4.20 units per minute 6 units per minute 31,752 units 35,280 units
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Decision to Sell before or after additional processing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education