Chapter 10 and 11 Homework

Chapter 10 and 11 Homework - MCE= 0.4/0.9=.44444 18)1...

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Ch. 10 Prob. 20, Ch. 11 Prob. 18 20)1. Throughput time Month 1= 0.6+0.7+0.5+3.6 = 5.4 Month 2= 0.5+0.7+0.5+3.6 = 5.3 Month 3= 0.5+0.4+0.4+2.6 = 3.9 Month 4= 0.4+0.3+0.5+1.7 = 2.9 MCE Month 1= 0.6/5.4 = 0.11111 Month 2= 0.5/5.3 = 0.094 Month 3= 0.5/3.9 = 0.128 Month 4= 0.4/2.9 = 0.138 Delivery Cycle Time Month 1= 9.6+5.4 = 15 Month 2= 8.7+5.3 = 14 Month 3= 5.3+3.9 = 9.2 Month 4= 4.7+2.9 = 7.6 2. The trend over the four months is in a positive direction. The MCE needs to be improved. This can be done by using faster transportation, better inspection systems, and a better queue system. 3. a) Throughput time= 0.4+0.3+0.5 = 1.2 MCE= 0.4/1.2= 0.333 b) Throughout time= 0.5+0.4= 0.9
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Unformatted text preview: MCE= 0.4/0.9= .44444 18)1. Material s price variance= (78,000*$3.75)-(78,000*$3.50)= $19,500 U Materials quantity variance= (78,000*$3.50)-(80,000*$3.50)= $7,000 F 2. Direct labor rate variance= 32,000($11.80-$12.00)= $6,400 F Labor efficiency variance= $12.00(32,500-30,000)= $30,000 U 3. Variable overhead spending efficiency= 32,500($2.73-$2.00)= $23,725 U Variable overhead efficiency variance= $2.00(32,500-30,000)= $5,000 U Budget variance= $148,000-$180,000= $32,000 F Volume variance= $9.00(25,000-30,000)= $45,000 F 4. $168,625.00 No, their variances were very large in absolute value...
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