Cycle Time and Velocity Bemidii Company has the following data for one of its production departments: Theoretical velocity: 620 units per hour Productive minutes available per year: 31,000,000 Annual conversion costs: $186,000,000 Actual velocity: 310 units per hour Required: 1. Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute. Round your actual cycle time answer to three decimal places and your cost per unit answer to the nearest c Actual cycle time minutes per unit Standard cost per minute per minute Conversion cost per unit 2. Calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute. If required, round your intermediate calculations and final answers to two decimal places. Theoretical cycle time minutes per unit Conversion cost per unit per unit What incentive exists for managers when cycle time costing is used? per unit 3. What if the actual velocity is 434 units per hour? What is the conversion cost per unit? If required, round your intermediate calculations and final answers to two decimal places. Actual cycle time minutes per unit Conversion cost per unit per unit

Cycle Time and Velocity Bemidii Company has the following data for one of its production departments: Theoretical velocity: 620 units per hour Productive minutes available per year: 31,000,000 Annual conversion costs: $186,000,000 Actual velocity: 310 units per hour Required: 1. Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute. Round your actual cycle time answer to three decimal places and your cost per unit answer to the nearest c Actual cycle time minutes per unit Standard cost per minute per minute Conversion cost per unit 2. Calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute. If required, round your intermediate calculations and final answers to two decimal places. Theoretical cycle time minutes per unit Conversion cost per unit per unit What incentive exists for managers when cycle time costing is used? per unit 3. What if the actual velocity is 434 units per hour? What is the conversion cost per unit? If required, round your intermediate calculations and final answers to two decimal places. Actual cycle time minutes per unit Conversion cost per unit per unit

Name: Cycle Time and VelocityBemidii Company has the following data for one
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Description: Cycle Time and VelocityBemidii Company has the following data for one of its production departments:Theoretical velocity: 620 units per hourProductive minutes available per year: 31,000,000Annual conversion costs: $186,000,000Actual velocity: 310 un

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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