Refer to the information for Theta Company on the previous page. The actual cycle time for Theta

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Refer to the information for Theta Company on the previous page. The actual cycle time for

Theta Company is 3.2 minutes, and the theoretical cycle time is 3 minutes.

Theta Company has the following data for one of its manufacturing plants:

Maximum units produced in a quarter (3-month period): 400,000 units

Actual units produced in a quarter (3-month period): 375,000 units

Productive hours in one quarter: 20,000 hours

Required:

1. Calculate the amount of processing time and the amount of nonprocessing time.

2. Calculate the MCE.

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Related Book For  book-img-for-question

Managerial Accounting The Cornerstone of Business Decision Making

ISBN: 978-1337115773

7th edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

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