1.
a.
Throughput time: It is the total time required for the completion of a process. For instance, the time required to manufacture machinery from the beginning till its end is the throughput time. The throughput time comprises process time, inspection time, move time, and queue time. Wait time is not a part of throughput time.
The throughput time for each month.
1.
b.
Delivery cycle time: It is the total time required to produce as well as deliver the product to the customers. Basically, the elapsed time from the procurement of a client order until the final product is dispatched is the delivery cycle time.
The delivery cycle for each month.
1.
c.
Manufacturing cycle: This refers to the amount of time in the manufacturing process that is spent on enriching or improving the product. Basically, it is the time taken by an organization in order to convert raw material into finished goods.
The manufacturing cycle efficiency for each month.
2.
Performance indicators: Throughput time, manufacturing cycle efficiency, and delivery cycle time are all such indicators that help in analyzing the company’s performance. Throughput time is the elapsed time from the time of inception of the production process till the goods are dispatched to the customer, manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product, and delivery cycle time is the total time required to produce as well as deliver the product to the customers.
To evaluate: The company’s performance over the last four months.
3.
a.
Throughput time: Throughput time is the elapsed time from the time of inception of the production process till the goods are dispatched to the customer.
Manufacturing cycle efficiency: Manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product.
The throughput time and MCE for Month 5.
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Chapter 12 Solutions
MANAGERIAL ACCOUNTING (LL) W/CONNECT >C<
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- The Blue Jay Corporation has annual sales of $5,200, total debt of $1,500, total equity of $2,800, and a profit margin of 8 percent. What is the return on assets? Don't Use Aiarrow_forwardAt the beginning of the year, manufacturing overhead for the year was estimated to be $810,000. At the end of the year, actual direct labor hours for the year were 40,000 hours, the actual manufacturing overhead for the year was $780,000, and the manufacturing overhead for the year was overapplied by $30,000. If the predetermined overhead rate is based on direct labor hours, then the estimated direct labor hours at the beginning of the year used in the predetermined overhead rate must have been ____ hours. ANSWERarrow_forwardCompute the company's plantwide predetermined overhead rate for the yeararrow_forward
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