Acme Manufacturing adopted lean management and reorganized their factory into production cells. Each production cell produces a small family of products or components from start to finish. For the industrial fittings cell, they replaced the CNC machine with a drill press. The drill press is a much less costly machine than the CNC machine. It also has a longer cycle time but it is faster and easier to set up. The faster setups allowed Acme to reduce their batch sizes from 2, 500 to 200 (not the 250 in the diagram). The lean cell is depicted in the figure below. Each fitting requires four minutes on the drill press. Drilled fittings awaiting lathing are located between the two machines in the cell, so lathe operations can begin when drilling is complete However, like the drill press, some time is required to set up the lathe to produce the particular model fitting in the new batch. Grinding completes work on a first batch in, first out basis. Once the entire batch is complete, it is sent to inspection/packing. After packing, it is moved to the warehouse for finished goods storage, and the units are available to be included in shipments to customers. Despite adopting lean management, Acme Manufacturing continues to use standard costing The standard direct material cost is $2.50 per fitting. The standard direct labor cost is $20 per direct labor hour and the standard overhead cost is $60 per direct labor hour. The standard direct labor time per fitting is equal to the standard processing time in each process. What is the total standard cost per fitting? Show your calculations. Suppose a customer wants 100 fittings of model QX5, not currently in stock. Assuming Acme can instantly begin production of a batch of 250 model QX5s on the drill press when they receive the order, and still run in batches of 250, what is the shortest possible amount of time it would take to have the 100 QX5s in the warehouse ready to be shipped to the Customer? Explain your answer including any assumptions and calculations. Regardless of what the standard costs say, how do you think the actual costs of operating production cells will be compare to the conventional departmental organization? What costs are likely to be higher and what costs are likely to be lower