   Chapter 5, Problem 36BEB ### Managerial Accounting: The Corners...

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

#### Solutions

Chapter
Section ### Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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# Velocity and Cycle TimeTara Company takes 8,000 hours to produce 40,000 units of a product.Required:What is the velocity? Cycle time?

To determine

Calculate the velocity and cycle time.

Explanation

Cycle Time:

Cycle time is the activity performance measure that calculates the duration of time which is required to manufacture one unit of product.

Velocity refers to the number of units that is manufactured in the given duration of time. For example, output per hour.

Use the following formula to calculate the velocity:

Velocity=Units producedTime

Substitute 40,000for units produced and 8,000 for time.

Velocity=40,0008,000=5units per hour

Therefore, the value of velocity is 5 units per hour

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