Calculate MCE. Comment on its significance.
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Craig, Inc., has provided the following information for one of its products for each hour of production:
Actual velocity: 100 units (per hour)
Move time: 20 minutes
Inspection time: 18 minutes
Rework time: 12 minutes
Required:
Calculate MCE. Comment on its significance.
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- Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced Total Costs 1 0 $ 2,900 2 460 3,774 3 860 4,534 4 1,260 5,294 5 1,660 6,054 6 2,060 6,814 7 2,460 7,574 8 2,860 8,334 9 3,260 9,094 10 3,660 9,854 Exercise 21-6A (Algo) Appendix: Measuring costs using regression LO P1 Use spreadsheet software to use ordinary least-squares regression to estimate the cost equation, including fixed and variable cost amounts. Cost equation = + per unitRequired: 1. Using the five most expensive activities, calculate the overhead cost assigned to each prod-uct. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities.2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome.3. What if activities 1, 2, 5, and 8 each had a cost of $650,000 and the remaining activities hada cost of $50,000? Calculate the cost assigned to Wafer A by a fully specified ABC systemand then by an approximately relevant ABC approach. Comment on the implications forthe approximately relevant approach.Prakesh Company has the following data for one of its manufacturing cells: Maximum units produced in a month: 62,500 units Actual units produced in a month: 56,250 units Hours of production labor in one month: 10,000 hours Required: 1. Compute the theoretical cycle time. Round your answer to the nearest whole minute.fill in the blank 1 minutes per unit 2. Compute the actual cycle time. Round your answer to the nearest whole minute.fill in the blank 2 minutes per unit 3. Compute the theoretical velocity. Round your answer to the nearest whole unit.fill in the blank 3 units per hour 4. Compute the actual velocity. Round your answer to the nearest whole unit.fill in the blank 4 units per hour
- (Chapter 4: Process Improvement) Consider a process consisting of three resources. Assume the demand rate is 8 units/hour. The process activities are always performed in the following sequence. Resource 1 has a processing time of 5 minutes per unit. Resource 2 has a processing time of 4 minutes per unit. Resource 3 has a processing time of 6 minutes per unit. Resource 1 is staffed by worker A and A's wage rate is $13 per hour. Resource 2 is staffed by worker B and B's wage rate is $13 per hour. Resource 3 is staffed by worker C and C's wage rate is $20 per hour. If one additional worker could be hired, to which resource should this worker be assigned? Calculate the new process capacity in units/hr. O Assign the new worker to Resource 3. The process capacity is 12 units per hour. O Assign the new worker to Resource 3. The process capacity is 10 units per hour. O Assign the new worker to Resource 1. The process capacity is 20 units per hour. O Assign the new worker to Resource 2. The…Schoen Corp. manufactures three types of electrical motors. Type A is sold upon completion of the production assembly. Types B and C can be sold after production or sent to a different plant for further processing to add various capabilities to the motors. The following data are available for each of the three types of motors at the beginning of the month: Units to be produced Total costs to produce before further processing Total sales revenue if sold immediately Additional processing costs Total sales revenue if processed further Additional profit (or loss) if B is processed further: $ A 10,000 $240,000 300,000 0 0 B 8,000 $250,000 320,000 30,000 340,000 6,000 $240,000 300,000 20,000 360,000Tango Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: ABODO Units produced Batch size (units) Total direct labor hours 7,000 Cost per setup $ 7,000 Use of activity-based costing would allocate the following amounts of setup cost to each unit: (Rounded to the nearest cent.) A) B) C) D) E) Alpha $ 175.00 $ 438.00 $ 12.92 $83.00 $9.00 Multiple Choice Option A Option B Option C Option D Option E Alpha Zeta $ 11.67 $963.14 $ 13.00 $ 20.00 $ 0.11 Zeta 66,000 600 800 40 118,000 $ 7,000
- Best Ink produces printers for personal computers. The following information is available for production of a recent order of 500 printers. Process time 16.0 hours Inspection time 3.5 hours Move time 9.0 hours Wait time 21.5 hours 1. Compute the company’s manufacturing cycle time. 2. Compute the company’s manufacturing cycle efficiency. 3. Assume the company wishes to increase its manufacturing cycle efficiency to 0.80. If process time is unchanged, what is the maximum number of hours of non-value-added time the company can have and meet this goal?Mabbut Company has the following departmental manufacturing layout for one of its plants: Required:1. Calculate the total time it takes to produce a batch of 10 units using the traditionaldepartmental manufacturing layout.2. Using cellular manufacturing, how much time is saved producing the same batch of10 units? Assuming the cell operates continuously, what is the production rate? Whichprocess controls this production rate?3. Assume the processing time of Welding is reduced to 6 minutes, while the times ofthe other processes stay the same. What is the production rate now, and how longwill it take to produce a batch of 10 units if the cell is in a continuous productionmode?Spring, Incorporated manufactures two products. It currently has 1,000 hours of direct labor and 2,080 hours of machine time available per month. The following table lists the contribution margin, labor and machine time requirements, and demand for each product: Unit contribution margin Demand Labor time Machine time Product A $21 1, 040 units 3/4 hour 1 hour How much of each product should Spring manufacture per month? Product B $18 2,080 units 1 hour 1/2 hour
- Oakwood Company produces maple bookcases. The following information is available for the production of a recent order of 500 bookcases. Process time 6.0 days Inspection time 0.8 days Move time 3.2 days Wait time 5.0 days 1. Compute the company’s manufacturing cycle time. 2. Compute the company’s manufacturing cycle efficiency. 3. Management believes it can reduce move time by 1.2 days and wait time by 2.8 days by adopting lean manufacturing techniques. Compute the company’s cycle efficiency assuming the company’s predictions are correct.Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows: Step Time (in minutes) Process Step 1 5 Process Step 2 8 Process Step 3 4 Process Step 4 3 The time required to move each batch between steps is 4 minutes. In addition, the time to move raw materials to Process Step 1 is also 4 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 6 minutes. The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the: present and proposed production…Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: Product A: (machine hours= 1,200) (number of batches 55) Product X: (mahine hours= 3,200) (number of batches 18) Totals: (Machine hours= 4,400) (number of batches 73) What is the amount of Machining cost assigned to Product X?
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