{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch 19 B worksheets 16th-2 - PROBLEM 19.1B SMIT CORPORATION...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
PROBLEM 19.1B SMIT CORPORATION a. Value-added production activities: b. Non-value-added production activities: c. Total cycle time: Production Activity Number of Days days Cutting materials ……………………………………………………… Rework ……………………………………………………… Warranty repairs ………………………………………………………. Quality training ……………………………………………………… Painting finished products ……………………………………………. Bending materials …………………………………………………….. Purchasing raw materials …………………………………………….. Assembling finished products ……………………………………….. Total cycle time ………………………………………………………..
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
PROBLEM 19.1B SMIT CORPORATION (concluded) d. Manufacturing efficiency ratio: Value-Added Activity Days Cutting materials …………………………………… Painting finished products ………………………… Bending materials …………………………………… Purchasing raw materials ………………………… Assembling finished products ……………………… Total value-added time ……………………………… days e. The following activities might be reduced or eliminated if Smit implements a JIT system: f. Negative consequences: eliminates the jobs of employees performing non-value-added work. Value-Added Time ÷ Total Cycle Time Smit's total cycle time was computed in part c . Its value-added time is shown below: Given total value-added time of 60 days and a total cycle time of 86 days, Smit’s manufacturing efficiency ratio must be 70%: 60 days ÷ 86 days = 70 % Rework eliminated Warranty repairs - possibly reduced or eliminated Quality training - possibly reduced Positive consequences: reduction in cost of producing goods/services, reduction in overall production time, increase in profitability of company, constant improvement of product quality.
Image of page 2
PROBLEM 19.2B THE PARVEE COMPANY a. Target Cost: PAR Target Cost = Target Price - Target Profit Target Price = $ Target Profit = Target Cost = Target Cost: VEE Target Cost = Target Price - Target Profit Target Price = $ Target Profit = Target Cost = b. If fixed overhead is allocated based on units of production, the fixed overhead cost per unit is equal to $62.50 calculated as follows: Allocation Rate = Fixed Overhead = = per Unit Total Units of Production Total manufacturing cost per unit: PAR VEE Direct materials cost per unit ……………………………………………..
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern