Shark Industries has the theoretical capability to produce 120,000 units per month but currently produces 90,000 units. The conversion cost for the month is P2,550,000. There are 7,500 production hours available per month. In addition to processing time, it takes 13 minutes of move time and 8 minutes of wait time to produce a unit.   Compute the Actual Velocity Compute the theoretical velocity Compute the actual cycle time Compute the theoretical cycle time

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Shark Industries has the theoretical capability to produce 120,000 units per month but currently produces 90,000 units. The conversion cost for the month is P2,550,000. There are 7,500 production hours available per month. In addition to processing time, it takes 13 minutes of move time and 8 minutes of wait time to produce a unit.  

  1. Compute the Actual Velocity
  2. Compute the theoretical velocity
  3. Compute the actual cycle time
  4. Compute the theoretical cycle time
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