FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following
information for the machine whose limited capacity is prohibiting the company from producing and selling additional units:
Actual run time this week
Machine time available per week
Actual run rate this week
Ideal run rate
Defect-free output this week
Total output this week (including defects)
1-a. Utilization rate
1-b. Efficiency rate.
1-c. Quality rate
1-d. Overall equipment effectiveness
13,370 minutes
19, 100 minutes
2-a. Utilization loss in units
2-b. Efficiency loss in units
2-c. Quality loss in units
8.00 units per minute
10 units per minute.
Required:
1. and 2. With respect to the company's overall equipment effectiveness, calculate the following:
Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole
number.
64,176 units
106,960 units
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Transcribed Image Text:Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units: Actual run time this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 13,370 minutes 19, 100 minutes 2-a. Utilization loss in units 2-b. Efficiency loss in units 2-c. Quality loss in units 8.00 units per minute 10 units per minute. Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number. 64,176 units 106,960 units
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