Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Chapter 11, Problem 39E
(Appendix 11A) Manufacturing Cycle Efficiency
Kurena Company provided the following information on one of its factories:
Maximum units produced in a quarter: 180,000 units
Actual units produced in a quarter: 112,500 units
Hours of cell production labor in a quarter: 30,000 hours
Theoretical cycle time: 10 minutes per unit
Actual cycle time: 16 minutes per unit
Required:
- 1. Calculate the amount of processing time per unit and the amount of nonprocessing time per unit.
- 2. Calculate the MCE (rounded to three significant digits).
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Delko Company has the following data for one of its manufacturing plants:
Maximum units produced in a quarter (3-month period): 250,000 units
Actual units produced in a quarter (3-month period): 210,000 units
Productive hours in one quarter: 25,000 hours
The actual cycle time for Indy Company is 7.14 minutes, and the theoretical cycle time is 6 minutes.
Required:
1. Calculate the amount of processing time and the amount of nonprocessing time. If required, round your answers to
two decimal places.
Processing time
minutes
Nonprocessing time
minutes
2. Calculate the MCE. If required, round your answer to nearest whole number.
Calculating Manufacturing Cycle Efficiency
Indy Company has the following data for one of its manufacturing plants:
Maximum units produced in a quarter (3-month period): 250,000 units
Actual units produced in a quarter (3-month period): 192,000 units
Productive hours in one quarter: 25,000 hours
The actual cycle time for Indy Company is 7.81 minutes, and the theoretical cycle time is 6 minutes.
Required:
1. Calculate the amount
processing time and the amount of nonprocessing time.
required, rour
your answers to
wo
ecimal places.
Processing time
minutes
Nonprocessing time
minutes
2. Calculate the MCE. If required, round your answer to nearest whole number.
%
Hernandez Corp. wants to compute its throughput for August. The following production data are available:
Good units produced and sold
2,923,200
Total units produced
4,844,000
Total processing (in hours)
201,600
Value-added time (in hours)
50,300
a. Determine the manufacturing cycle efficiency. ______%
b. Determine the process productivity. ______ units per hour
c. Determine the process quality yield. ______%
d. Determine the throughput using only good units and total time. ______ units per hour
Chapter 11 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 11 - Discuss the differences between centralized and...Ch. 11 - Prob. 2DQCh. 11 - Explain why firms choose to decentralize.Ch. 11 - What are margin and turnover? Explain how these...Ch. 11 - What are the three benefits of ROI? Explain how...Ch. 11 - What is residual income? What is EVA? How does EVA...Ch. 11 - Can residual income or EVA ever be negative? What...Ch. 11 - What is transfer price?Ch. 11 - Prob. 9DQCh. 11 - (Appendix 11A) What is the Balanced Scorecard?
Ch. 11 - (Appendix 11A) Describe the four perspectives of...Ch. 11 - The practice of delegating authority to...Ch. 11 - Which of the following is not a reason for...Ch. 11 - A responsibility center in which a manager is...Ch. 11 - A responsibility center in which a manager is...Ch. 11 - If sales and average operating assets for Year 2...Ch. 11 - If sales and average operating assets for Year 2...Ch. 11 - The key difference between residual income and EVA...Ch. 11 - It ROI for a division is 15% and the company's...Ch. 11 - Prob. 9MCQCh. 11 - Prob. 10MCQCh. 11 - (Appendix 11A) Which of the following is a...Ch. 11 - (Appendix 11A) The length of time it takes to...Ch. 11 - Use the following information for Brief Exercises...Ch. 11 - Use the following information for Brief Exercises...Ch. 11 - Use the following information for Brief Exercises...Ch. 11 - Prob. 16BEACh. 11 - Use the following information for Brief Exercises...Ch. 11 - Use the following information for Brief Exercises...Ch. 11 - Use the following information for Brief Exercises...Ch. 11 - Use the following information for Brief Exercises...Ch. 11 - Prob. 21BEBCh. 11 - Calculating Transfer Price Teslum Inc. has a...Ch. 11 - Use the following information for Brief Exercises...Ch. 11 - Use the following information for Brief Exercises...Ch. 11 - Types of Responsibility Centers Consider each of...Ch. 11 - Margin, Turnover, Return on Investment Pelak...Ch. 11 - Margin, Turnover, Return on Investment, Average...Ch. 11 - Return on Investment, Margin, Turnover Data follow...Ch. 11 - Residual Income The Avila Division of Maldonado...Ch. 11 - Economic Value Added Falconer Company had net...Ch. 11 - Use the following information for Exercises 11-31...Ch. 11 - Use the following information for Exercises 11-31...Ch. 11 - Prob. 33ECh. 11 - Use the following information for Exercises 11-33...Ch. 11 - Prob. 35ECh. 11 - (Appendix 11A) Cycle Time and Velocity Prakesh...Ch. 11 - (Appendix 11A) Cycle Time and Velocity Lasker...Ch. 11 - (Appendix 11A) Manufacturing Cycle Efficiency...Ch. 11 - (Appendix 11A) Manufacturing Cycle Efficiency...Ch. 11 - Return on Investment and Investment Decisions...Ch. 11 - Return on Investment, Margin, Turnover Ready...Ch. 11 - Return on Investment for Multiple Investments,...Ch. 11 - Return on Investment and Economic Value Added...Ch. 11 - Transfer Pricing GreenWorld Inc. is a nursery...Ch. 11 - Prob. 45PCh. 11 - Prob. 46PCh. 11 - (Appendix 11A) Cycle Time, Velocity, Conversion...Ch. 11 - (Appendix 11A) Balanced Scorecard The following...Ch. 11 - (Appendix 11A) Cycle Time and Velocity,...Ch. 11 - Prob. 50C
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