1.
Throughput time 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.
2.
The manufacturing cycle 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. Manufacturing cycle time includes material movement time, loading time, idle waiting time, machining and assembly time, inspection time, and so on.
:
The manufacturing cycle efficiency for the quarter.
3.
Throughput time is the elapsed time from the time of inception of the production process till the goods are dispatched to the customer. The throughput time is made up of four elements. It is the total of process time, inspection time, move time, and queue time.
:
The percentage of throughput time spent in non-value-added activities.
4.
Delivery cycle time 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 time.
5.
The manufacturing cycle 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. Manufacturing cycle time includes material movement time, loading time, idle waiting time, machining and assembly time, inspection time, and so on.
:
The new MCE if by using Lean Production all queue time during production is eliminated.
Want to see the full answer?
Check out a sample textbook solutionChapter 12 Solutions
MANAGERIAL ACCOUNTING (LL+CONNECT)
- Problem 1: The IT corporation produces and markets two types of electronic calculators: Model 11 and model 12. The following data were gathered on activities last month. Model 11 Model 12 Sales in units... Selling price per unit.. Variable production costs per unit.. Traceable fixed production costs.. Variable selling expenses per unit.. Traceable fixed selling expenses....... Allocated division administrative expenses.. $50,000 Prepare a segmented income statement in the contribution format for last month 5,000 $50 $10 $100,000 $5 5,000 3,000 $100 $26 $150,000 $6 7,500 $60,000arrow_forwardInspection time 0.4 days Wait time (from order to start of production) 16.8 days Process time 2.8 days Move time 1.1 days Queue time 4.3 days 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. 3. What percentage of the throughput time was spent in non–value-added activities? 4. Compute the delivery cycle time. 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?arrow_forward8 The following data are average times per order over the last month. Wait time to start production Inspection time 16.2 days 1.8 days Process time 2.7 days Move time 2.6 days Queue time 8.2 days The manufacturing cycle efficiency (MCE) would be closest to: А. 29%. В. 82%. С. 46%. D. 18%. Е. None of the abovearrow_forward
- Question 5 Carpentaria Corporation's management attempts to track the time it takes to process orders. During the most recent month, the following average times were recorded per order (in hours): Wait time Inspection time Move time Queue time If the Manufacturing cycle efficiency was 12%, what was the average processing time during the month? 6.4 1.1 0.9 HOME 2.2arrow_forward(Appendix 11A) Balanced Scorecard The following list gives a number of measures associated with the Balanced Scorecard: a. Number of new customers b. Percentage of customer complaints resolved with one contact c. Unit product cost d. Cost per distribution channel e. Suggestions per employee f. Warranty repair costs g. Consumer satisfaction (from surveys) h. Cycle time for solving a customer problem i. Strategic job coverage ratio j. On-time delivery percentage k. Percentage of revenues from new products Required: 1. Classify each performance measure as belonging to one of the following perspectives: financial, customer, internal business process, or learning and growth. 2. Suggest an additional measure for each of the four perspectives.arrow_forwardContribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: It is expected that 12,000 units will be sold at a price of 240 a unit. Maximum sales within the relevant range are 18,000 units. Instructions 1. Prepare an estimated income statement for 20Y7. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-even sales. 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to one decimal place.) 6. Determine the operating leverage.arrow_forward
- (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. Calculate the amount of processing time per unit and the amount of nonprocessing time per unit. 2. Calculate the MCE (rounded to three significant digits).arrow_forwardCommunication The Norse Division of Gridiron Concepts Inc. experienced significant revenue and profit growth from 20Y4 to 20Y6 as shown in the following divisional income statements: There are no support department allocations, and the division operates as an investment center that must maintain a 15% return on invested assets. Determine the profit margin, investment turnover, and return on investment for the Norse Division for 20Y420Y6. Based on your computations, write a brief memo to the president of Gridiron Concepts Inc., Knute Holz, evaluating the divisions performance.arrow_forward(Appendix 11A) Manufacturing Cycle Efficiency Ventris Company found that one of its manufacturing cells had actual cycle time of 15 minutes per unit. The theoretical cycle time for this cell was 9 minutes per unit. Required: 1. Calculate the amount of processing time per unit and the amount of nonprocessing time per unit. 2. Calculate the MCE.arrow_forward
- Question 3 WONDER Ltd maker of quality pens has experienced a steady growth in sales for the past five years. However, increased competition has led the Managing Director of WONDER Ltd to believe that an aggressive advertising campaign will be necessary next year to maintain the company's present growth. To prepare for next advertising campaign, the company's accountant has prepared and presented to the Managing Director the following data for the current year 2020. COST SCHEDULE Variable cost per pen: Direct labour Direct material Variable overhead Total Variable Costs Fixed Cost: Manufacturing Selling Administrative Total Fixed Costs £ 8.00 3.25 2.50 13.75 Required: 25,000 40,000 70,000 135,000 Selling price £25 Expected sales 2020 (20,000units) £500,000 20% Tax Rate The Managing Director has set a target for 2021 at a level of £550,000 (or 22,000 pens) d. What will be the break-even point in pound sales for 2021 if the additional £11,250 is spent? e. If the additional £11,250 is…arrow_forwardQuestion 3 WONDER Ltd maker of quality pens has experienced a steady growth in sales for the past five years. However, increased competition has led the Managing Director of WONDER Ltd to believe that an aggressive advertising campaign will be necessary next year to maintain the company's present growth. To prepare for next advertising campaign, the company's accountant has prepared and presented to the Managing Director the following data for the current year 2020. COST SCHEDULE Variable cost per pen: Direct labour Direct material Variable overhead Total Variable Costs Fixed Cost: Manufacturing Selling Administrative Total Fixed Costs £ 8.00 3.25 2.50 13.75 25,000 40,000 70,000 135,000 Selling price £25 Expected sales 2020 (20,000units) £500,000 Tax Rate 20% The Managing Director has set a target for 2021 at a level of £550,000 (or 22,000 pens) Required: a. What is the projected after-tax net income for 2020? b. What is the break-even point in unit for 2020? c. The Managing Director…arrow_forwardPrint Item Question Content Area Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials — $46 Direct labor — 40 Factory overhead $200,000 20 Selling expenses: Sales salaries and commissions 110,000 8 Advertising 40,000 — Travel 12,000 — Miscellaneous selling expense 7,600 1 Administrative expenses: Office and…arrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubPkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE L
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,