b6 Waymouth Manufacturing operates a contract manufacturing plant located in Dublin, Ireland. The plant provides a variety of electronicsproducts and components to consumer goods manufacturers around the world. Cycle time is a critical success factor for Waymouth,which has developed a number of measures of manufacturing speed. Waymouth has studied the matter and found that competitivecontract manufacturers have manufacturing cycle times (MCE) of about 32%. When last calculated, Waymouth's MCE was 24%Key measures from the recent month's production, averaged over all the jobs during that period, are as follows:ActivityNew product developmentMaterials handlingOrder setupMachine maintenanceOrder schedulingInspection of completed orderPack and move to storage or shipManufacturing assemblyOrder taking and checkingReceiving and stocking raw materialsInspection of raw materials at start of productionRequired:Average Time(hours)8.01.50.51.012.03.01.52.02.50.52.0Determine the manufacturing cycle efficiency (MCE) for the recent month. (Round your answer to 1 decimal place (i.e..123 = 12.3%).)Manufacturing cycle efficiency (MCE)

Step 1: Identify the Value-Added TimeThe value-added time is the time spent on the activity that…

Answered: Waymouth Manufacturing operates a…

Cornerstones of Cost Management (Cornerstones Series)

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

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Waymouth Manufacturing operates a contract manufacturing plant located in Dublin, Ireland. The plant provides a variety of electronics products and components to consumer goods manufacturers around the world. Cycle time is a critical success factor for Waymouth, which has developed a number of measures of manufacturing speed. Waymouth has studied the matter and found that competitive 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 Manufacturing cycle efficiency (MCE) 5.5 2.5…
10.
Ellie Mosk, CEO of X-Space Industries, decided to expand the company's product offering beyond the core model rocket business. After investigation, she decided to set up a separate division to design and manufacture products for the drone market. Several companies were interested in having X-Space develop these drones, and financial results, to date, have been encouraging. Revenue was $4 million, gross margins have been running about 40%, and the customer sales and support costs were $1 million. However, there is a growing concern that some customers require a disproportionate share of the sales and support resources, and the true profitability of the customers is unknown. Data were collected to support an analysis of customer profitability: Activity Cost Driver Total Cost $ 479,000 267,000 Sales visits Sales visit days Product modifications Number of modifications Phone calls Number of minutes 92,700 169,000 $ 1,007,700 E-mail/electronic communications Number of communications Visit…
The management of International Cookwares believes that delivery performance measures must be improved if the company is to maintain its competitive edge. The following data are considered to be typical of the time to complete orders. • Process time: 4 days • Wait time to the start of production: 15 days • Move time: 3 days ● Inspection time: 2 days • Queue time during the production process: 8 days What is the delivery cycle time?
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?
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…
A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $92,000, an annual M&O cost of $31,000, and $40,000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $124,000 per year. The company's MARR is 37% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select. The incremental ROR is %. The manager should select robot: (Click to select) (Click to select) Y
Washington’s engineers have found a way to reduce equipment manufacturing time. The new method would cost an additional $500 per unit and would allow Washington to manufacture 30 additional units a year. Should Washington implement the new method? Show your calculations.
Acme Semiconductor is expanding its facility and needs to add equipment. There are three process tools under consideration. You have been asked to perform an economic analysis to select the most appropriate tool to acquire. You have gathered the following information for evaluation. Each of these tools has a useful life of seven years. Acme’s accounting staff has established a company-wide MARR of 8% per year.Which one of the process tools should be selected?
1. Compute the unit contribution margin for both models.

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