COST ACCOUNTING
COST ACCOUNTING
16th Edition
ISBN: 9781323169261
Author: Horngren
Publisher: PEARSON C
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Chapter 19, Problem 19.33P

Waiting times, manufacturing cycle times. The Sandstone Corporation uses an injection molding machine to make a plastic product, Z35, after receiving firm orders from its customers. Sandstone estimates that it will receive 60 orders for Z35 during the coming year. Each order of Z35 will take 100 hours of machine time. The annual machine capacity is 8,000 hours.

  1. 1. Calculate (a) the average amount of time that an order for Z35 will wait in line before it is processed and (b) the average manufacturing cycle time per order for Z35.

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  1. 2. Sandstone is considering introducing a new product, Y21. The company expects it will receive 30 orders of Y21 in the coming year. Each order of Y21 will take 40 hours of machine time. Assuming the demand for Z35 will not be affected by the introduction of Y21, calculate (a) the average waiting time for an order received and (b) the average manufacturing cycle time per order for each product, if Sandstone introduces Y21.
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COST ACCOUNTING

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