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A workstation has a production rate of 150 parts/hour and runs for 6 hours of a shift. The direct manufacturing cost is $40/part. Only 85%
A workstation has a production rate of 150 parts/hour and runs for 6 hours of a shift. The direct manufacturing cost is $40/part. Only 85% of the parts conform to specifications during (first-pass yield). From the non-conforming parts, 60% can be reworked into an acceptable product, and the rest is scrapped; the cost of this additional processing is $10/part.
a. How many good parts are produced? b. What is the manufacturing cost per good part produced?
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