
Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767
Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767 Exercise 43
( Appendix 12A ) Cycle Time and Velocity
Lasker Company divided its tool production factory into manufacturing cells. Each cell produces one product. The cordless drill cell had the following data for last quarter:
Maximum units produced in a quarter: 90,000 units
Actual units produced in a quarter: 75,000 units
Hours of cell production labor in a quarter: 30,000 hours
Required:
Compute the (1) theoretical cycle time (in minutes), (2) actual cycle time (in minutes), (3) theoretical velocity (in units per hour), and (4) actual velocity (in units per hour).
Lasker Company divided its tool production factory into manufacturing cells. Each cell produces one product. The cordless drill cell had the following data for last quarter:
Maximum units produced in a quarter: 90,000 units
Actual units produced in a quarter: 75,000 units
Hours of cell production labor in a quarter: 30,000 hours
Required:
Compute the (1) theoretical cycle time (in minutes), (2) actual cycle time (in minutes), (3) theoretical velocity (in units per hour), and (4) actual velocity (in units per hour).
Explanation
• Cycle time is the length of time it ta...
Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
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