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Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767 Exercise 51
( Appendix 12A ) Calculating Manufacturing Cycle Efficiency
Indy Company has the following data for one of its manufacturing plants:
Maximum units produced in a quarter (3-month period): 250,000 units
Actual units produced in a quarter (3-month period): 200,000 units
Productive hours in one quarter: 25,000 hours
Refer to the information for Indy Company above. The actual cycle time for Indy Company is 7.5 minutes and the theoretical cycle time is 6 minutes.
Required:
1. Calculate the amount of processing time and the amount of nonprocessing time.
2. Calculate the MCE.
Indy Company has the following data for one of its manufacturing plants:
Maximum units produced in a quarter (3-month period): 250,000 units
Actual units produced in a quarter (3-month period): 200,000 units
Productive hours in one quarter: 25,000 hours
Refer to the information for Indy Company above. The actual cycle time for Indy Company is 7.5 minutes and the theoretical cycle time is 6 minutes.
Required:
1. Calculate the amount of processing time and the amount of nonprocessing time.
2. Calculate the MCE.
Explanation
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Verified
• 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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