Concept introduction:
Manufacturing cycle time:
Manufacturing cycle time refers to whole time of production process. In other words, we can say that total time taken from introducing raw materials till the production of final product, is known as manufacturing cycle time.
Requirement 1:
Company’s manufacturing cycle time.
Concept introduction:
Manufacturing cycle time:
Manufacturing cycle time refers to whole time of production process. In other words we can say that total time taken from introducing raw materials till the production of final product, is known as manufacturing cycle time.
Requirement 2:
Company’s manufacturing cycle efficiency.
Concept introduction:
Manufacturing cycle time:
Manufacturing cycle time refers to whole time of production process. In other words we can say that total time taken from introducing raw materials till the production of final product, is known as manufacturing cycle time.
Requirement 3:
What is the maximum number of hours of non-value-added time?
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Managerial Accounting
- SanaMolp management reports that its average delivery cycle time is 20.0 days; its average throughput time is 7.5 days; its manufacturing cycle efficiency is 0.32; its average move time is 0.2 day; and its average queue time is 4.0 days: a. What is the wait time? b. What is the process time? c. What is the inspection time? Answer with solution plsarrow_forwardConsider the below diagram showing production process of Company XYZ: Process A 1.25/hour Process B 2.75/hour Process C Process D 0.5/ minute 3.25/ hour What will be the rate of the production for the company? a) 1.25 per hour b) 3.25 per hour c) 7.75 per hour d) 30 per hourarrow_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
- Inspection 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_forwardManagement of Mittel Company wants to reduce the elapsed time from when a customer places an order to when it is shipped. It provided the following data for a recent quarter: Inspection time Wait time (from order to start of production) Process time Move time Queue time Required: 1. Compute the throughput time. Note: Round your answer to 1 decimal place. 1. Throughput time 2. Manufacturing cycle efficiency 3. Non-value-added throughput time 4. Delivery cycle time 5. New manufacturing cycle efficiency 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. Note: Round your percentage answer to nearest whole percent. 3. What percentage of the throughput time was spent in non-value-added activities? Note: Round your percentage answer to nearest whole percent. 4. Compute the delivery cycle time. Note: Round your intermediate calculations and final answer to 1 decimal place. 5. If using Lean Production eliminates all queue time, what will be the new MCE? Note: Do not round…arrow_forwardQuestion 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost 500000 ? Total labor cost Manufacturing Overhead ? 400000 100000 90000 30000 ? Calculate: A. B. Calculate cost per unit B. Describe the production costs in the equation form Y = f+ vX. C. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the montharrow_forward
- Evaluating Selected Cost Driver Assume that a manufacturer of specialized machine parts developed the following total cost estimating equation for manufacturing costs. Y = $14,400 + $1,250 (actual units) a. What is total estimated manufacturing costs if 180 units are produced? $Answer 0arrow_forwardSimplifying the ABC System: DBC Electan Company produces two types of printers. The company uses ABC, and all activity driv-ers are duration drivers. Electan Company is considering using DBC and has gathered the fol-lowing data to help with its decision. Required: 1. Using cycle time and practical capacity for each product, calculate the total time for all pri-mary activities.Comment on the relationship to ABC. 2. Calculate the overhead rate that DBC uses to assign costs. Comment on the relationship toa unit-based plantwide overhead rate.3. Use the overhead rate calculated in Requirement 2 to calculate (a) the overhead cost perunit for each product, and (b) the total overhead assigned to each product. How does thiscompare to the ABC assignments shown in Part B of the Information set?4. What if the units actually produced were 10,000 for Printer A and 18,000 for Printer B.Using DBC, calculate the cost of unused capacity.arrow_forwardFor a typical order, assume the following times (in hours): storage time (in between processes), 4.0; inspection time, 2.0; move time (from process to process), 3.0; and manufacturing (processing) time, 6.0. Given this information, what is the manufacturing cycle efficiency (%)? (Hint: Refer to Exhibit 14.14.) (Round your answer to 1 decimal place. (e.g., 32.463% = 32.5%))arrow_forward
- 1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. 3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE. 3-b. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE.arrow_forwardCanfield Components produces machine parts. The average times for its largest volume product (in hours) follow: 12.02 18.41 12.70 13.22 Inspecting product Manufacturing product Storing inventory Transporting product Required: Calculate the manufacturing cycle efficiency. Note: Do not round intermediate calculations. Round your final answer to the nearest whole percent. Manufacturing cycle efficiency %arrow_forwardManagement of Mittel Company wants to reduce the elapsed time from when a customer places an order to when it is shipped. It provided the following data for a recent quarter: Inspection time Wait time (from order to start of production) Process time Move time Queue time Required: 1. Compute the throughput time. Note: Round your answer to 1 decimal place. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. Note: Round your percentage answer to nearest whole percent. 1. Throughput time 2. Manufacturing cycle efficiency 3. Non-value-added throughput time 0.3 day 15.9 days 3.1 days 3. What percentage of the throughput time was spent in non-value-added activities? Note: Round your percentage answer to nearest whole percent. 4. Compute the delivery cycle time. Note: Round your intermediate calculations and final answer to 1 decimal place. 5. If using Lean Production eliminates all queue time, what will be the new MCE? Note: Do not round intermediate calculations. Round your…arrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning