1. ABC Co. manufactures desks in the finishing and assembly process. Desks are manufactured in 20 unit batches. The finishing time is 12 minutes and the assembly time is 8 minutes per desk. It takes 20 minutes to move a batch of desks from finishing to assembly. (a) Compute the value added, non-value added, and total lead time of this process. (b) Compute the value-added ratio (round to one decimal place if necessary). (c) A study was conducted resulting in the following changes: Desks made in 30 unit batches Finishing time reduced to 8 minutes Move time reduced to 16 minutes Compute the total lead time and value added ratio after the process changes: 2. Johnny Co. operates under the lean philosophy. As a result, it has a production cell for its power drills. The conversion costs for 4,000 hours of production is budgeted for the year at $2,400,000. During January, 2,000 units were started and completed. Each drill requires 12 minutes of cell production time. (a) Determine the budgeted cell conversion costs per hour (b) Determine the conversion manufacturing costs per unit