Hiawatha Hydrant Company manufactures fire hydrants in Oswego, New York. The following information pertains to operations duringMay.Processing time (average per batch)Inspection time (average per batch)Waiting time (average per batch)Move time (average per batch)Units per batch4.40 hours0.35 hour0.35 hour0.35 hour21 unitsRequired:1. Compute the manufacturing cycle efficiency. (Do not round intermediate calculations. Round your final answer to the nearestwhole percent.)2. Compute the manufacturing cycle time. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)3. Compute the velocity. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)1. Manufacturing cycle efficiency2.Manufacturing cycle time3.Velocity%hour per unitunits per hour

1. Manufacturing Cycle Efficiency (MCE)Manufacturing cycle efficiency (MCE) is a metric used in…

Answered: Hiawatha Hydrant Company manufactures…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

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Compute (a) manufacturing cycle time and (b) manufacturing cycle efficiency using the following information from a manufacturing company. Process time. 15.0 minutes Move time. 6.4 minutes Inspection time. 2.0 minutes Wait time. 36.6 minutes
Compute (a) cycle time, (b) value-added time, (c) non-value-added time, and (d) cycle efficiency using the following information for a manufacturer. Process time. 2.10 days Move time. 0.75 days Inspection time. 0.50 days Wait time. 0.15 days
Canfield 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 %
For a typical order, assume the following times (in hours): storage time (in between processes),5.0; inspection time, 1.0; move time (from process to process), 2.0; and manufacturing (processing) time, 8.0. Given this information, what is the manufacturing cycle efficiency (%), roundedto 1 decimal place (e.g., 45.156% = 45.2%)? (Hint: Refer to Exhibit 14.14 and accompanyingdiscussion.)
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Activity Changeover Machining Process Overhead Cost Driver Quantity $ 453,500 302,000 229,500 Components Number of batches 870 Machine hours 7,640 Setups Number of setups 220 $ 985,000 $ 181,100 227,000 Welding hours Number of inspections Finishing Welding Inspecting 4,800 790 Rework 60,250 Rework orders 200 Purchasing Providing space Providing utilities $ 468,350 $ 137,000 30,550 60,300 Support Purchase orders 458 Number of units 5,400 5,400 Number of units $ 227,850 Additional…
Larsen, Inc., produces two types of electronic parts and has provided the following data: There are four activities: machining, setting up, testing, and purchasing. Required: 1. Calculate the activity consumption ratios for each product. 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). When compared with the activity ratios, what can you say about the relative accuracy of a plantwide rate? Which product is undercosted? 3. What if the machine hours were used for the plantwide rate? Would this remove the cost distortion of a plantwide rate?
The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes represent production in units, machine hours, or direct labor hours. In each case, the zero point is at the intersection of the two axes. Each graph may be used no more than once. Required: Select the graph that matches the lettered cost described here. a. Depreciation of equipmentthe amount of depreciation charged is computed based on the number of machine hours that the equipment was operated. b. Electricity billflat fixed charge, plus a variable cost after a certain number of kilowatt hours are used. c. City water billcomputed as follows: d. Depreciation of equipmentthe amount is computed by the straight-line method. e. Rent on a factory building donated by the citythe agreement calls for a fixed fee payment, unless 200,000 labor hours are worked, in which case no rent need be paid. f. Salaries of repair workersone repair worker is needed for every 1,000 machine hours or less (i.e., 0 to 1,000 hours requires one repair worker, 1,001 to 2,000 hours requires two repair workers, etc.).
Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: aCalculated using number of dies as the single unit-level driver. bCalculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. 2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome. 3. What if activities 1, 2, 5, and 8 each had a cost of 650,000 and the remaining activities had a cost of 50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach. Comment on the implications for the approximately relevant approach.
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Vandenheuvel Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Move time Wait time Queue time Process time Inspection time The manufacturing cycle efficiency (MCE) was closest to: (Round your intermediate calculations to 1 decimal place.) Multiple Choice O 0.11 0.19 0.31 Hours 3.3 19.7 9.9 1.7 0.9 0.05
The Majors Company collected the following information (in days): Inspecting product Transporting product Storing product Manufacturing product 20 22 31 56 What is the manufacturing cycle efficiency?
The assembly-line activities are given as follows for the manufacturing of a product: Performance Time (mins) Performance Time (mins) 6 4 5 3 Task A B с D Predecessors A B B Task E F G H 524 2 Predecessors C с D, E, F G For a given 7-minute cycle time after allowances, the theoretical minimum number of workstations = (round your response to the immediate higher whole number).

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