Vaymouth Manufacturing operates a contract manufacturing plant located in Dublin, Ireland. The plant provides a variety of es products and components to consumer goods manufacturers around the world. Cycle time is a critical success factor for Way which has developed a number of measures of manufacturing speed. Waymouth has studied the matter and found that comp contract manufacturers have manufacturing cycle times (MCE) of about 37%. When last calculated, Waymouth's MCE was 34% Key measures from the recent month's production, averaged over all the jobs during that period, are as follows: Activity New product development Materials handling Order setup Machine maintenance Order scheduling Inspection of completed order Pack and move to storage or ship Manufacturing assembly Order taking and checking Receiving and stocking raw materials Inspection of raw materials at start of production Average Time (hours) 28.0 1.5 5.5 2.5 14.0 2.0 0.5 2.0 1.5 2.0 1.0 Required: Determine the manufacturing cycle efficiency (MCE) for the recent month. (Round your answer to 1 decimal place (i.e. 123 1 Manufacturing cycle efficiency (MCE) Next

Vaymouth Manufacturing operates a contract manufacturing plant located in Dublin, Ireland. The plant provides a variety of es products and components to consumer goods manufacturers around the world. Cycle time is a critical success factor for Way which has developed a number of measures of manufacturing speed. Waymouth has studied the matter and found that comp contract manufacturers have manufacturing cycle times (MCE) of about 37%. When last calculated, Waymouth's MCE was 34% Key measures from the recent month's production, averaged over all the jobs during that period, are as follows: Activity New product development Materials handling Order setup Machine maintenance Order scheduling Inspection of completed order Pack and move to storage or ship Manufacturing assembly Order taking and checking Receiving and stocking raw materials Inspection of raw materials at start of production Average Time (hours) 28.0 1.5 5.5 2.5 14.0 2.0 0.5 2.0 1.5 2.0 1.0 Required: Determine the manufacturing cycle efficiency (MCE) for the recent month. (Round your answer to 1 decimal place (i.e. 123 1 Manufacturing cycle efficiency (MCE) Next

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 34P

See similar textbooks

Similar questions

Theory of constraints, throughput margin, and relevant costs. Washington Industries manufactures electronic testing equipment. Washington also installs the equipment at customers’ sites and ensures that it functions smoothly. Additional information on the manufacturing and installation departments is as follows (capacities are expressed in terms of the number of units of electronic testing equipment): Washington manufactures only 250 units per year because the installation department has only enough capacity to install 250 units. The equipment sells for $55,000 per unit (installed) and has direct material costs of $30,000. All costs other than direct material costs are fixed. The following requirements refer only to the preceding data. There is no connection between the requirements.
Continental Engineering Ltd manufactures three types of ceramic coffee percolator; the Silver, Gold and the Platinum models. The maximum market demand and resource requirements of each of these products are shown below. The percolators are made from an advanced heat-resistant material that gives the firm a competitive advantage. An email from the purchasing manager has informed you that, because of a problem with the supplier, it should be assumed that the half year’s supply of this special material is limited to 90,000kg. Continental operates on a just-in-time production (JIT) method so that opening and closing inventory levels are zero. The sales director has already accepted an order for 5,000 Gold percolators that, if not fulfilled, would incur a financial penalty of £10,000. This order is included in the Gold’s maximum market demand figure. Continental’s directors need to know whether they should go ahead and satisfy the contract and then prioritise production in the…
Continental Engineering Ltd manufactures three types of ceramic coffee percolator; the Silver, Gold and the Platinum models. The maximum market demand and resource requirements of each of these products are shown below. The percolators are made from an advanced heat-resistant material that gives the firm a competitive advantage. An email from the purchasing manager has informed you that, because of a problem with the supplier, it should be assumed that the half year’s supply of this special material is limited to 90,000kg. Continental operates on a just-in-time production (JIT) method so that opening and closing inventory levels are zero. The sales director has already accepted an order for 5,000 Gold percolators that, if not fulfilled, would incur a financial penalty of £10,000. This order is included in the Gold’s maximum market demand figure. Continental’s directors need to know whether they should go ahead and satisfy the contract and then prioritise production in the…
CASE STUDY Cucumber Ltd is a company, based in Manchester UK and established in 2005, that produces smart phones. It is a relatively small company, with a highly skilled work force. Despite the global recession, the company is still profitable due to its excellent products and reputation for customer service The company has six key departments – Marketing, Customer Support, Finance, Manufacturing, Research and Development, and HR. The company Mission statement is to be “Recognised by customers and employees as a progressive, high quality, supplier of innovative mobile products at affordable prices” Key financial targets The CEO, Mr Armstrong, has recently had a formal strategy meeting with his fellow directors to confirm the Mission Statement, and they have agreed that the financial targets for each of the next three years should be a Return on Capital Employed of 18% and a profit before tax of £5m. “With a £150 selling price per unit and a £100 variable cost per unit, we…
Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Number of cases Number of orders. Direct labour-hours per case Selling price per case. Direct materials cost per case Sales Costs: Direct materials Direct labour Supporting manufacturing Order processing Customer service The company's direct labour rate is $30 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Customer margin Standard Model 290 5 0.25 $49 $ 26 70 Deluxe Model 105 2 $ 0.40 $ 69 $29 70 (70)
Weathereye, Inc. manufactures weather satellites. The final assembly and testing of the satellites is a largely manual operation involving dozens of highly trained electronics technicians. The following learning curve has been estimated for the firm’s newest satellite model, which is about to enter production. Required:1. What will be the average labor time required to assemble and test each satellite when the company has produced four satellites? Eight satellites?2. What will be the total labor time required to assemble and test all satellites produced if the firm manufactures only four satellites? Eight satellites?3. How can the learning curve be used in the company’s budgeting process? In setting cost standards?
The Sports Equipment Company produces a wide variety of sports equipment. Its newest division, Golf Technology, manufactures and sells a single product— AccuDriver, a golf club that uses global positioning satellite technology to improve the accuracy of golfers’ shots. The demand for AccuDriver is relatively insensitive to price changes. The following data are available for Golf Technology, which is an investment center for Sports Equipment: Total annual fixed costs $26,000,000 Variable cost per AccuDriver $ 600 Number of AccuDrivers sold each year 170,000 Average operating assets invested in the division $46,000,000 Q. Compute Golf Technology’s ROI if the selling price of AccuDrivers is $800 per club.
The Sports Equipment Company produces a wide variety of sports equipment. Its newest division, Golf Technology, manufactures and sells a single product— AccuDriver, a golf club that uses global positioning satellite technology to improve the accuracy of golfers’ shots. The demand for AccuDriver is relatively insensitive to price changes. The following data are available for Golf Technology, which is an investment center for Sports Equipment: Total annual fixed costs $26,000,000 Variable cost per AccuDriver $ 600 Number of AccuDrivers sold each year 170,000 Average operating assets invested in the division $46,000,000 Q.If management requires an ROI of at least 25% from the division, what is the minimum selling price that the Golf Technology Division should charge per AccuDriver club?
In the dynamic landscape of manufacturing and sales, Caribann is a company with thepotential to produce 100,000 units of its sole product annually. Caribann's interplay of costsand production capacity prompts an analysis that will guide it in navigating the balancebetween revenue generation and cost management. As we examine Caribann's scenario,critical financial data emerges, laying the foundation for strategic decision-making.The following information is available:Selling price - -----------------------------------------------------$42 per unitVariable manufacturing costs -----------------------------------$24 per unitFixed manufacturing costs---------------------------------------$360,000 annuallyFixed marketing and administrative costs ---------------------$240,000 annuallyVariable marketing and administrative costs -----------------$4 per unitRequired:1) Calculate breakeven point in units. 2) Compute the quantity of units which need to be sold to earn a target annual profit…
In the dynamic landscape of manufacturing and sales, Caribann is a company with thepotential to produce 100,000 units of its sole product annually. Caribann's interplay of costsand production capacity prompts an analysis that will guide it in navigating the balancebetween revenue generation and cost management. As we examine Caribann's scenario,critical financial data emerges, laying the foundation for strategic decision-making.The following information is available:Selling price - -----------------------------------------------------$42 per unitVariable manufacturing costs -----------------------------------$24 per unitFixed manufacturing costs---------------------------------------$360,000 annuallyFixed marketing and administrative costs ---------------------$240,000 annuallyVariable marketing and administrative costs -----------------$4 per unit 3) In attempting to achieve better results in the marketplace, management has been looking at changing the reward system for marketing,…
In the dynamic landscape of manufacturing and sales, Caribann is a company with thepotential to produce 100,000 units of its sole product annually. Caribann's interplay of costsand production capacity prompts an analysis that will guide it in navigating the balancebetween revenue generation and cost management. As we examine Caribann's scenario,critical financial data emerges, laying the foundation for strategic decision-making. The following information is available:Selling price - -----------------------------------------------------$42 per unitVariable manufacturing costs -----------------------------------$24 per unitFixed manufacturing costs---------------------------------------$360,000 annuallyFixed marketing and administrative costs ---------------------$240,000 annuallyVariable marketing and administrative costs -----------------$4 per unit Required:1) Calculate breakeven point in units. 2) Compute the quantity of units which need to be sold to earn a target annual profit…
[The following information applies to the questions displayed below.] Ferry Electronics produces a wide variety of video and audio systems for home entertainment. One of the Ferry plants (Lakeview) produces home theatre systems. The plant produces three models, Silver, Gold, and Platinum, which differ in the quality of the components and capability to "fill" the room with sound. The financial team at Ferry is completing the planning for the coming quarter. Information on volumes and costs expected for the quarter follow: Units produced Machine-hours Direct labor-hours Revenues Direct materials costs Direct labor costs Manufacturing overhead Operating Profit Total profit (loss) Silver 2,000 590 600 Silver $ 583,600 310,000 9,600 Gold Gold 1,500 2,100 1,200 $ 793,050 533,250 28,800 Platinum 500 1,050 750 $493,350 303,000 25,350 The team has been discussing two issues. First, there is disagreement about how best to allocate the manufacturing overhead among the products. The current cost…