A manufacturing plant has the theoretical capability to produce 54,000 printers per quarter but currently produces 20,250

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A manufacturing plant has the theoretical capability to produce 54,000 printers per quarter but currently produces 20,250 units. The conversion cost per quarter is $2,430,000.

There are 13,500 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of printers uses nine minutes of move time, six minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)


Required:

1. Compute the theoretical and actual velocities (per hour) and the theoretical and actual cycle times (minutes per unit produced).

2. Compute the ideal and actual amounts of conversion cost assigned per printer.

3. Calculate MCE. How does MCE relate to the conversion cost per printer?


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Related Book For  book-img-for-question

Cost Management Accounting And Control

ISBN: 101

6th Edition

Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan

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