BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

Solutions

Chapter
Section
BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
1 views

(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. 1. Calculate the amount of processing time per unit and the amount of nonprocessing time per unit.
  2. 2. Calculate the MCE (rounded to three significant digits).

1.

To determine

Calculate the amount of processing time per unit and non-processing time per unit.

Explanation

Manufacturing Cycle Efficiency:

MCE can be defined as the operational measure which can be determined by dividing the value-added time by the total time. Both nonvalue-added time and value-added time are included in the manufacturing cycle efficiency.

The processing time will be equivalent to the theoretical cycle time that is 10 minutes per unit.

Use the following formula to calculate the non-processing time:

Non-processing time=Actual cycle time

2.

To determine

Calculate the MCE.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Describe the three levels of management.

Foundations of Business (MindTap Course List)

Use a production possibilities frontier to describe the idea of efficiency.

Principles of Microeconomics (MindTap Course List)

WACC AND COST OF COMMON EQUITY Kahn Inc. has a target capital structure of 60% common equity and 40% debt to fu...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)