Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number. 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kilmer Company's customer 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:
15,120 minutes
25,200 minutes
7.00 units per minute
10 units per minute
74,088 units
105,840 units
1. and 2. With respect to the company's overall equipment effectiveness, calculate the following:
Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units"
answers to the nearest whole number.
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
Transcribed Image Text:Kilmer Company's customer 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: 15,120 minutes 25,200 minutes 7.00 units per minute 10 units per minute 74,088 units 105,840 units 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number. 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
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