FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Activity analysis; MCE
Log Cabins Unlimited constructs vacation houses in the North Carolina mountains. The company has developed the following value chart:

Operations Average Number of Days
Receiving materials 4
Storing materials 18
Measuring and cutting materials 13
Handling materials 13
Setting up and moving scaffolding 11
Assembling materials 5
Building fireplace 17
Pegging logs 14
Cutting and framing doors and windows 9
Sealing joints 7
Waiting for county inspectors 11
Inspecting property (county inspectors) 2

a. How much of the total time is value-added time? Answer hours
b. How much total time is spent performing non-value-added activities? Answer hours
c. Calculate the manufacturing cycle efficiency of the process.
Note: Round the percentage to one decimal point (i.e. show 14.445% as 14.4%).
Answer%

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