Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. Thecompany provided the following information for the machine whose limited capacity is prohibiting thecompany from producing and 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)Required:15,120 minutes25,200 minutes7.00 units per minute10 units per minute74,088 units105,840 units1. 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 rate1-b. Efficiency rate.1-c. Quality rate1-d. Overall equipment effectiveness2-a. Utilization loss in units2-b. Efficiency loss in units

The overall equipment effectiveness is a measure to improve the production process. It identifies…

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

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

Section: Chapter Questions

Problem 1Q

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Question

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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