Concept introduction:
Cycle efficiency:
Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency we know about the use of whole cycle time in the value-added activities.
Requirement 1:
Non-value-added time under the traditional manufacturing process.
Answer to Problem 3P
Explanation of Solution
Concept introduction:
Cycle efficiency:
Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency, we know about the use of whole cycle time in the value-added activities.
Requirement 2:
Cycle efficiency under the traditional manufacturing process.
Answer to Problem 3P
Explanation of Solution
Concept introduction:
Cycle efficiency:
Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency, we know about the use of whole cycle time in the value-added activities.
Requirement 3:
Non-value-added time under the proposed lean manufacturing process.
Answer to Problem 3P
Explanation of Solution
Concept introduction:
Cycle efficiency:
Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency, we know about the use of whole cycle time in the value-added activities.
Requirement 4:
Cycle efficiency under the proposed lean manufacturing process.
Answer to Problem 3P
Explanation of Solution
Concept introduction:
Cycle efficiency:
Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency we know about the use of whole cycle time in the value-added activities.
Requirement 5:
Would the proposed lean approach improve cycle efficiency?
Answer to Problem 3P
Yes, the proposed lean approach would improve cycle efficiency.
Explanation of Solution
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Chapter C Solutions
Managerial Accounting
- Please do not give solution in image format thankuarrow_forwardkaran subject-Accountingarrow_forwardng Enabled: Assignment 2 i Saved Siegel Corporation manufactures a product available in both a deluxe and a regular model. The company has made the regular model for years; the deluxe model was introduced several years ago to capture a new segment of the market. Since the introduction of the deluxe model, the company's profits have steadily declined, and management has become concerned about the accuracy of its costing system. Sales of the deluxe model have been increasing rapidly. 3:56 Overhead is applied to products on the basis of direct labour-hours. At the beginning of the current year, management estimated that $2,610,400 in overhead costs would be incurred and the company would produce and sell 15,000 units of the deluxe model and 63,616 units of the regular model. The deluxe model requires 2.8 hours of direct labour time per unit, and the regular model requires 1.5 hours. Materials and labour costs follow: Direct materials cost per unit Deluxe $195 22 Regular $99 16 Direct…arrow_forward
- Please do not give solution in image format thankuarrow_forwardPlease do not give solution in image format thankuarrow_forwardew History BookmarRS Functional Accounting 2 FinalF X Connect ontent https://ezto.mheducation.com/ext/map/index.html?_con3Dcon&external_browser Saved Chapter 05 6 Volume Volume Volume Volume Volume Required: (1) Identify whether the cost behavior in each graph is mixed, step-wise, fixed, variable, or curvilinear. (2) Identify the graph (by number) that best illustrates each cost behavior: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify whether the cost behavior in each graph is mixed, step-wise, fixed, variable, or curvilinear. Graph # 1 Graph #2 Graph # 3 Graph #4 Graph #5 OCT 20 W Costs Costs Costs Costs Costsarrow_forward
- Simplifying the ABC System: DBC Electan Company produces two types of printers. The company uses ABC, and all activity driv-ers are duration drivers. Electan Company is considering using DBC and has gathered the fol-lowing data to help with its decision. Required: 1. Using cycle time and practical capacity for each product, calculate the total time for all pri-mary activities.Comment on the relationship to ABC. 2. Calculate the overhead rate that DBC uses to assign costs. Comment on the relationship toa unit-based plantwide overhead rate.3. Use the overhead rate calculated in Requirement 2 to calculate (a) the overhead cost perunit for each product, and (b) the total overhead assigned to each product. How does thiscompare to the ABC assignments shown in Part B of the Information set?4. What if the units actually produced were 10,000 for Printer A and 18,000 for Printer B.Using DBC, calculate the cost of unused capacity.arrow_forwardPlease do not give solution in image format thankuarrow_forwardFast solve plzarrow_forward
- Computing product costs in an ABC system The Alright Manufacturing Company in Rochester, Minnesota, assembles and tests electronic components used in smartphones. Consider the following data regarding component T24 (amounts are per unit): Requirements Complete the missing items for the two tables. Why might managers favor this ABC system instead of Alright’s older system, which allocated all manufacturing overhead costs on the basis of direct labor hours?arrow_forwardKnowledge Check Bluebean Incorporated produces two lines of coffee cups: espresso coffee cups and travel coffee mugs. The unit cost information is shown here. The company uses a traditional volume-based costing system and believes that the number of labor hours is the appropriate cost driver. Activity Cost Pool Selling price Direct materials Direct labor Units produced Direct labor hours Estimated total overhead costs Item Number 1-Predetermined overhead rate Item Number 2- Total manufacturing overhead allocated Item Number 3-Manufacturing cost per unit Item Number 4-Gross profit per unit Espresso Coffee Cups $ 20 $6 $2 10,000 units 10,000 hours $ 80,000 Travel Coffee Mugs $ 25 58 $5 4,000 units 6,000 hours Espresso Coffee Cups Travel Coffee Mugsarrow_forwardComputing product costs in an ABC system The Alexander Manufacturing Company in Rochester, Minnesota, assembles and tests electronic components used in smartphones. Consider the following data regarding component T24 (amounts are per unit): Requirements Complete the missing items for the two tables. Why might managers favor this ABC system instead of Alexander-’s older system, which allocated all manufacturing overhead costs on the basis of direct labor hours?arrow_forward
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