Case #3 Tificor Corporation produces decorative world globes. The company's manufacturing process has three operations: machining, finishing, and assembly. For 2020, the company budgeted the following: Direct materials cost $13,500,000 Conversion costs $11,250,000 Budgeted production hours 18,000 Theoretical output 135,000 At the end of 2020, the company's accountant gathered the following actual data: Direct materials cost Conversion costs Production hours Output $11,700,000 $11,250,000 18,000 112,500 Required (A) What is production velocity and cycle time? (B) Calculate the velocity (number of globes per hour) that the company could theoretically produce in 2020. 2 (C) Calculate the theoretical cycle time (number of hours per globe and number of minutes per globe) that would take the company to produce one globe. (D) Calculate the budgeted conversion cost per minute and, using this rate, calculate the budgeted conversion cost per globe. (E) Calculate the actual velocity and actual cycle time that the company used to produce one globe. (F) Using the conversion cost per minute computed in (D), calculate the conversion cost per globe based on the actual cycle time per globe. (G) What do the calculations you computed in sections (B) to (F) tell you about efficiency of the production department? Explain