Calculate MCE. Comment on its significance.

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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Craig, Inc., has provided the following information for one of its products for each hour of production:

 

Actual velocity: 100 units (per hour)

Move time: 20 minutes

Inspection time: 18 minutes

Rework time: 12 minutes

 

Required:

 

Calculate MCE. Comment on its significance.

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