CH 7 Exercises 7-12, 7-20
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Exercise 7-12 (Activity measures)
Watch Annin Flagmaking, complete the worksheet about costs 1. Some specific Annin Flagmaking activities
2. Classify level of activity
3. Provide an example of an activity measure
(unit, batch, product, customer)
(common measures: count, time)
Direct labor workers assembling flags
unit
DL hours or DL costs
Product design
Product
designing hours
Equipment setup (tread machine)
batch
setup hours
Machines used to cut and sew flags
unit
machine hours
Monthly bills are sent to customers
customer
time spent sending bills
Forklift and driver to move materials
batch
hours spent moving materials
Final inspection for defects
unit
inspection hours
Plant manager's salary
Generally more accurate especially when time consumed differs within activities, but also takes more effort (i.e. cost)
Transaction driver: counts of the number of times an activity occurs
Duration driver:
the amount to time required to perform an activity.
Exercise 7-20
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. 1. C
For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned.
The current fee is $28 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers--particularly those located on
remote ranches that require considerable travel time. The owner's daughter, home for the summer
from college, has suggested investigating this question using activity-based costing.
After some discussion, she designed a simple system consisting of four activity cost pools.
The activity cost pools and their activity measures appear below:
Activity Cost Pool
Activity Measure
Activity for the Year
Cleaning carpet
Sq. ft. cleaned (00's)
20,000 hundred square feet
Travel to jobs
miles driven
60,000 miles
Job support
Number of jobs
2,000 jobs
2. A
Other (organization-sustaining costs
and idle capacity costs)
none
n/a
The total cost of operating the company includes the following costs:
Wages
$150,000 Cleaning supplies
40,000
Cleaning equipment dep.
20,000
Vehicle expense
80,000
Office expenses
60,000
Presidents compensation
80,000
total cost
$430,000 Resource consumption is distributed across the activities as follows:
Other
total
Wages
70%
20%
0%
10%
100%
Cleaning supplies
100%
0%
0%
0%
100%
Cleaning equipment dep.
80%
0%
0%
20%
100%
Vehicle expense
0%
60%
0%
40%
100%
Office expenses
0%
0%
45%
55%
100%
Presidents compensation
0%
0%
40%
60%
100%
5. W
3. T
4. P
Cleaning carpets
travel to jobs
Job support
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Related Questions
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recent quarter, the following average times were recorded for each unit or order:
Inspection time
Process time
Queue time
Move time
Wait time
2 days
4 days
6 days
8 days
10 days
REQUIRED:
A) How long in days is the manufacturing cycle time or throughput time?
B) What is the manufacturing cycle efficiency ratio?
C) What percentage of the production time is spent on non-value-added activities?
D) How long in days is the delivery cycle time?
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I
Manpower
Not enough
training
Ingredient
shortage
Not enough
boxes
Drivers get
lost
Material
Low pay/
high turnover
||
Match each number in the chart with corresponding reason.
Source of error
||
|||
IV
Methods
Turnover
Training not
sufficient
Can't handle
large orders
Spoiled cheese
No GPSs
Several couriers are ill
Poor dispatch
Late weekend
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Hours
Processing (two departments) 45.0
Inspecting 3.0
Rework 7.5
Moving (three moves) 12.0
Waiting (for the second process) 36.0
Storage (before delivery to customer) 46.5
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Guest Registration Card
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3.______it includes several
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4. In all businesses or establishments, no
one would want to take long
transactions as it slows___
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Required information
[The following information applies to the questions displayed below.]
The following are the car repair shop data:
Ticket No.
1
Work
Brakes
Ticket No.
11
Work
Lube & oil
Ticket No.
21
Work
Transmission
2
Brakes
12
Battery
22
Lube & oil
3
Tires
13
Tires
23
Tires
4
Brakes
14
Lube & oil
24
Lube & oil
5
Lube & oil
15
Brakes
25
Brakes
6
Lube & oil
16
Tires
26
Brakes
7
Battery
17
Lube & oil
27
Brakes
8
Lube & oil
18
Lube & oil
28
Lube & oil
9
Brakes
19
Brakes
29
Tires
10
Lube & oil
20
Tires
30
Battery
Click here for the Excel Data File
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Work Type
Frequency
Brakes
Tires
Lube & oil
Battery
Transmission
Total
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Complaint Number of Occurrences
Week 1Error on bill 10Room not ready at check-in 8Room service delivery late 3Longline at check-out 10
Week 2Error on bill 12Noise in hallway 2Longline at check-out…
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Match each number in the chart with corresponding reason.
I
Manpower
Not enough
training
Ingredient
shortage
Not enough
boxes
Drivers get
lost
Material
Low pay/
high turnover
II
Source of error
11
III
IV
III
Methods
Turnover
Training not
sufficient
Machinery
Can't handle
large orders
Credit card
machine broken Too few phones
Reason
Oven breaks
▼
IV
▼
▼
Late weekend
pizza delivery
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Earned Value Management
Accounting vs Controlling
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Services for managing processes?
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Please do not give solution in image format thanku
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Technical
requirements
Importance
to
customer
Customer
requirements
Paper will not tear 3 A
Consistent finish
No ink bleed
Prints cleanly
1
2
3
7 Paper width
7 Paper thickness
? Roll roundness
thickness
Paper width
Paper
Roll roundness
Coating thickness
Tensile strength
Paper color
? Coating thickness
? Tensile strength
7 Paper color
O
Customer Requirements
Paper doesn't wrinkle
Prints clearly
Easy to use
a. What technical requirements have the highest impact on the customer requirement that the paper not tear? (You may select more
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J
O
Type of Paper
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Wash (hours)
Wax (hours)
(J)aguar
39/5
5
(C)adillac
5
3
(F)ord
1
39/10
(H)onda
2
1
(L)exus
4
4
What schedule produces the shortest time span in which these orders can be completed?
Sequence: ____ , _____ , _____ , ______ , ______
Create a Gantt chart for the optimal sequence (shortest time span).
How many hours does it take to complete the five orders?
For the schedule in question “a”, how many hours is the waxing task idle?
When will Dave finish the Cadillac?
What is the average order completion time?
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[The following information applies to the questions displayed below.]
The following are the car repair shop data:
TETE
Ticket No.
Work
Ticket No.
Work
Ticket No.
Work
1
Lube & oil
11
Battery
21
Battery
Tires
2
Lube & oil
12
Tires
22
3
Brakes
13
Brakes
23
Brakes
4
Lube & oil
14
Transmission
24
Transmission
Lube & oil
15
Brakes
25
Brakes
Tires
16
Battery
26
Lube & oil
7
Tires
17
Brakes
27
Lube & oil
8.
Brakes
18
Tires
28
Lube & oil
9.
Brakes
19
Tires
29
Tires
10
Lube & oil
20
Lube & oil
30
Lube & oil
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Cahalan is a network of clinics performing laser surgery for vision correction. Each clinic tracks the number of patients treated and the
number of professional-hours spent on the laser patient procedure. Consultations, follow-up visits, and so on are tracked separately.
The following data are from three clinics for the most recent reporting period:
Procedures completed
Professional hours
Clinic
East
South
North
East
370
590
Required:
a. Compute the partial productivity measures for professional staff for each of the three clinics.
Note: Round your answers to 2 decimal places.
Partial Labor
Productivity
South
1,300
1,720
North
730
1,040
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list of equipment
scheduling of activities (who will do what and when)
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Week 1Error on bill 10Room not ready at check-in 8Room service delivery late 3Longline at check-out 10
Week 2Error on bill 12Noise in hallway 2Longline at check-out…
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Question 2 options:
True
False
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1
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CAUSES: High Rate of absenteeism (Laziness of workers)
Idle Time of Workers (Laziness)
Shortage of Materials
Due to under-stock (supplier’s problem)
Insufficient Number of Trucks (supplier’s problem)
Longer Machine Downtime
Lack of Technician (Machine cause)
Bottleneck
Poor Layout
DATA:
The company operates 9 hours a day with one hour organized lunch break
Total working days per month is 20 days
Production Quota is 40,000 units per day
Actual Output is 16,000 units per day
Rate of absenteeism is 8 workers per day
Machine Capacity is 4000 units per…
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b. If the firm pays workers a piece rate of $0.03 per enve-lope for this job, what would the average worker make
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Edit View Insert Format
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Table
12pt v
Paragraph v
B I
A ev T? v
lyp
Ho pll
DDI
de
&
8
back
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is an example of a
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O delay
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O lower productivity of replacement employees
Scorecards, summits, dashboards, data mines, data warehouses, and
audits are examples of the
component of the LAMP model.
logic
O analytics
O process
O measures
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Founded in 1970, ABC is one of the world's largest insurance companies with locations in 28 countries. Given the following description, flowchart the new
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application and sometimes attach a check. The branch office then sent the application package through company mail to the XYZ division in London.
In addition, a customer might also fill out the application at home and send it directly to any number of ABC locations, which would then transfer it to the
London operation. Once received, XYZ separated the various parts of the application, then scanned and digitized it. The electronic image was then retrieved
from a server and delivered to an associate's desktop client computer. The associate was responsible for entering the information on the form into the
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