Required: a. Compute the throughput time. (Round your answer to 1 decimal places.) b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Rour percentage.) c. What percentage of the production time is spent in non-value-added activities? (Round your interm answer to nearest whole percentage.) d. Compute the delivery cycle time. (Round your answer to 1 decimal place.)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 7CE: Golding Bank provided the following data about its resources and activities for its checking account...
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Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following
average times were recorded per order:
Wait time:
Inspection tine
Process time
Move time
Queue time
Days
Required:
a. Compute the throughput time. (Round your answer to 1 decimal places.)
b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole
percentage.)
a Throughput time
b. MCE
17.4
0.2
2.2
0.2
3.5
c. What percentage of the production time is spent in non-value-added activities? (Round your intermediate calculations and final
answer to nearest whole percentage.)
d. Compute the delivery cycle time. (Round your answer to 1 decimal place.)
c Percentage of non-value-added activities
d Delivery cycle time.
days
%
%
days
D
Transcribed Image Text:Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Wait time: Inspection tine Process time Move time Queue time Days Required: a. Compute the throughput time. (Round your answer to 1 decimal places.) b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.) a Throughput time b. MCE 17.4 0.2 2.2 0.2 3.5 c. What percentage of the production time is spent in non-value-added activities? (Round your intermediate calculations and final answer to nearest whole percentage.) d. Compute the delivery cycle time. (Round your answer to 1 decimal place.) c Percentage of non-value-added activities d Delivery cycle time. days % % days D
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