{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

5e sol13-16

# 5e sol13-16 - minutes cost per minute per printer...

This preview shows page 1. Sign up to view the full content.

Cost Management Hansen and Mowen Prob 13-16 Name: SOLUTION Enter the appropriate numbers in the shaded cells in columns G and I. 1) Velocity (theoretical) = Capacity Production hours Velocity (theoretical) = 150,000 = 3 heaters per hour 50,000 Cycle time (theoretical) = Minutes per hour Speakers per hour Cycle time (theoretical) = 60 = 20 minutes per heater 3 2) Conversion cost rate = Conversion cost # minutes available Conversion cost rate = \$1,500,000 = \$0.50 per minute 3,000,000
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: minutes cost per minute per printer Assignment per unit (theoretical) = \$0.50 x 20 minutes = \$10 3) minutes cost per minute per printer Applied conversion cost = \$0.50 x 30 minutes = \$15 4) MCE = Processing time / (Processing time + Wait time + Inspection time + Rework time) = 20 / 30 = 0.67 Wasted time = Actual time - Theoretical time = 30-20 = 10 minutes Cost = Conversion cost rate x Wasted time = \$0.50 x 10 = \$5.00...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online